Bank of Canada holds rates, sees economic growth in second half

The Bank of Canada has decided to hold interest rates at 2.25%, while simultaneously reducing its economic growth forecast for 2026 to 0.7%. Although the institution anticipates economic growth during the second half of the year, the decision to maintain rates and cut future projections signals a period of prolonged economic caution. These developments are currently impacting borrowing costs and investor sentiment as the market reacts to the updated outlook provided by the Bank of Canada.