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

Bank of Canada’s Decision

On March 18, 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%.

“The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy. The breadth and duration of the conflict, and hence its economic impacts, are highly uncertain,” the central bank said in a news release.

“We will continue to assess the impact of US tariffs and trade policy uncertainty, and how the Canadian economy is adjusting. We are also monitoring the unfolding conflict in the Middle East closely and assessing its impact on growth and inflation.”

Third Consecutive Hold

The decision comes after the BoC kept its key interest rate at 2.25% on Jan. 28, 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 April 29, 2026.

Key Announcement Highlights

• The unemployment rate in Canada rose to 6.7% in February. Employment gains in Q4 2025 were largely reversed in the first 2 months of 2026.
• GDP in Canada contracted 0.6% in Q4 2025, after expanding by 2.4% in the third quarter. This was weaker than expected.
• Domestic demand grew by more than 2% due to strength in consumer and government spending. Housing markets remain weak.
• CPI inflation eased further to 1.8% in February, down from 2.3% in January. Food inflation slowed, but remains elevated.
• Global oil and natural gas prices have risen sharply due to the conflict in the Middle East. This will boost global inflation in the near-term.
• The Canada-US dollar exchange rate has remained 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.