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

Bank of Canada’s Decision

On July 15, 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%.

“Governing Council judges the current policy rate remains appropriate to sustain the economic recovery and bring inflation back to the 2% target, in line with the MPR projections,” the central bank said in a news release.

“Uncertainty is still high. Governing Council will continue to assess the strength of the Canadian economy and the outlook for inflation, and is prepared to adjust monetary policy as needed.”

Sixth Consecutive Hold

The decision comes after the BoC kept its key interest rate at 2.25% on June 10, 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 Sept. 2, 2026.

Key Announcement Highlights

• Canada’s GDP data over the past year was “choppy.” Growth stalled as the economy adjusted to new US tariffs, high uncertainty, and slower population growth.
• The BoC expects GDP growth of 0.7% in 2026. The economy is currently projected to increase by 1.8% in both 2027 and 2028.
• CPI inflation rose to 3.2% in May — mainly because of higher gasoline prices linked to the war in the Middle East. Excluding gasoline, inflation was 2.2% and measures of core inflation remained close to 2%.
• Business investment is projected to pick up modestly in 2026, boosted in the near term by the oil and gas sector. Despite the Canada-US-Mexico Agreement (CUSMA) now subject to annual reviews, more businesses are reportedly finding ways to navigate the uncertainty.
• Global economic prospects have been dented by higher oil prices. However, the build-out of artificial intelligence (AI) is supporting economic activity in a growing number of countries.

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.

As of June 2026, the unemployment rate is 6.5% — still hovering in the same range observed at the end of 2024.

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.