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

Bank of Canada’s Decision

On June 10, 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%.

“Economic activity in Canada has been weak and uncertainty about US trade policy persists. The conflict in the Middle East is ongoing and oil prices remain elevated,” the central bank said in a news release.

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

Fifth Consecutive Hold

The decision comes after the BoC kept its key interest rate at 2.25% on April 29, 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 July 15, 2026.

Key Announcement Highlights

• Employment rose in May, but overall employment in Canada — due to monthly volatility — is little changed since the start of 2026.
• GDP edged down by 0.1% in the first quarter. While data suggests that growth will resume in the second quarter, the economy is expected to remain in excess supply — even with some rebound.
• Energy prices and supply chain disruptions due to ongoing conflict in the Middle East are weighing on global economic growth and increasing inflation.
• CPI inflation rose to 2.8% in April. The increase reflects energy prices, both higher oil prices and the impact of the elimination of the consumer carbon tax falling out of the 12-month rate of inflation.
• While consumer spending grew 1.4% in the first quarter, government spending unexpectedly declined. Housing activity and business investment remain weak.
• The Canadian dollar has weakened against the US dollar and other currencies.

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.

Is Canada in a Recession?

Based on the current data, BoC governor Tiff Macklem told reporters during a news conference on the June interest rate decision that Canada is “not clearly” in a recession.

“There’s been a lot of volatility, month to month, quarter to quarter, but when you look through the bumps, I mean the economy hasn’t really grown in the last year, but it hasn’t shrunk either.”

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.