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Monetary policy bumps up against stimulus limits

Rise in 10-year bond yields indicates tighter lending conditions
Bank of Canada's head office in Ottawa, Ontario. (Getty Images)
Bank of Canada's head office in Ottawa, Ontario. (Getty Images)
CoStar Analytics
August 31, 2026 | 2:43 AM

Since being set at 2.25% on Oct. 29, 2025, the Bank of Canada's policy interest rate has remained unchanged. That level is below the neutral range of 2.5% to 3% and is therefore expected to stimulate economic activity.

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News | Monetary policy bumps up against stimulus limits