Bank of Canada Holds Interest Rate at 2.25% in April 2026: Employee Rights

Bank of Canada’s Decision

On April 29, 2026, the Bank of Canada (BoC) held its key interest rate at 2.25%.

The Bank Rate remains at 2.5%, while the deposit rate is 2.2%.

“We are closely monitoring the impact of the conflict in the Middle East and how the economy is responding to US tariffs and trade policy uncertainty,” the central bank said in a news release.

“Governing Council is looking through the war’s immediate impact on inflation but will not let higher energy prices become persistent inflation. As the outlook evolves, we stand ready to respond as needed.”

Fourth Consecutive Hold

The decision comes after the BoC kept its key interest rate at 2.25% on March 18, 2026.

For a complete list of interest rate changes and detailed insights, visit our full rate change list.

Next Rate Announcement

🗓️ The next interest rate announcement from the Bank of Canada is scheduled for June 10, 2026.

Key Announcement Highlights

• The unemployment rate in Canada remains in the 6.5% to 7% range, reflecting both weak hiring and fewer job seekers.
• The Iran war has led to sharply higher energy prices and transportation disruptions — diminishing growth prospects in oil-importing countries and boosting inflation worldwide. The BoC currently expects the global benchmark price of oil to decline to US$75 per barrel by mid-2027.
• CPI inflation jumped to 2.4% last month, with predictions that it will rise to approximately 3% in April because of higher gasoline prices. At this time, there’s little evidence that the oil shock has more broadly impacted goods and services prices. This will be closely monitored in the coming months.
• Consumer and government spending are supporting economic activity in Canada, while tariffs and trade uncertainty are weighing on exports and business investment. GDP growth of 1.2% is expected in 2026, rising to 1.7% in 2028.
• Housing activity declined in Q4 2025 — affected by slow population growth, economic uncertainty, and ongoing affordability issues.
• The US dollar has appreciated against most major currencies despite geopolitical and economic factors. The Canada-US exchange rate has been relatively stable.

How Does this Affect Employment?

The BoC’s decision to keep interest rates lower is aimed at stimulating business activity and consumer spending, which will hopefully lead to increased hiring.

However, the overall impact on employment will depend on how the broader economy reacts to lower rates, inflation, and US trade uncertainty.

Lost Your Job?

In the event that you’re fired or let go, it’s crucial to understand your employment rights in Canada.

Non-unionized employees can get up to 24 months of severance pay when they lose their job. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia (BC).

Severance is the compensation Canadians receive from their employer when they’re fired without cause.

• Fired for cause? It’s very likely that you’re still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

Regardless of a company’s grasp on employment law, they’re legally required to provide proper compensation after firing staff.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

📺 WATCH: 5 Key Facts About Termination “Without Cause”

Contact an Employment Lawyer

If you’ve been fired or let go for any reason, reach out to the experienced employment law team at Samfiru Tumarkin LLP.

We’ve successfully represented tens of thousands of non-unionized workers in Ontario, Alberta, and BC.

In addition to severance package negotiations, our lawyers can assist you on a broad range of employment matters, including:

📞 Contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.