The Bank of Canada published on Apr. 1 a summary of its Governing Council’s discussions leading to the monetary policy decision announced on March 18, 2026. The meetings, presided over by Governor Tiff Macklem and attended by senior leadership including Senior Deputy Governor Carolyn Rogers and Deputy Governors Toni Gravelle, Sharon Kozicki, Nicolas Vincent, Rhys Mendes and Michelle Alexopoulos, reviewed global economic developments and their implications for Canada.
The release provides insight into how international events such as the onset of war in Iran and rising energy prices are influencing inflation forecasts worldwide. The council acknowledged that while global growth was steady at about three percent as expected earlier in the year, heightened uncertainty from geopolitical conflict is likely to push up inflation rates globally.
Members discussed new risks stemming from both international trade developments—such as a US Supreme Court ruling on tariffs—and domestic factors like subdued housing markets in Toronto and Vancouver. They also considered weaker-than-expected goods exports and broad-based employment declines in early 2026. Despite these challenges, members noted that final domestic demand remained solid prior to the energy price shock.
Regarding inflation in Canada, the council observed that consumer price index inflation had eased to 1.8% in February but anticipated an increase due to higher gasoline prices resulting from global conflict. Members weighed potential effects on households’ perception of inflation given past spikes and noted that wage growth aligned with expectations.
In response to these uncertainties, the Governing Council decided it was too early to determine lasting impacts on economic growth or inflation outlooks. As a result, they agreed unanimously to keep the policy interest rate unchanged at 2.25%. The council emphasized communicating clearly with Canadians about their approach: “They would respond if needed to ensure that price increases did not spread to other goods and services and become persistent inflation.”
The Bank of Canada strives to maintain price stability and foster economic growth by overseeing monetary policy and financial systems according to the official website according to the official website. Macklem has served as governor since his appointment on June 3, 2020 according to the official website. The bank collaborates with university students through initiatives like the Governor’s Challenge for monetary policy simulations according to the official website. It also manages currency and digital payments while regulating retail payment systems as outlined on the official website, operating within Canada’s financial sector with a focus on monetary policy oversight according to the official website.
Looking ahead, members said they will closely monitor ongoing geopolitical events along with domestic indicators before making further adjustments. They agreed it is important “to keep options open while closely monitoring” evolving conditions.
