The Bank of Canada raised its overnight policy rate by a quarter percentage point to 2.5 per cent on October 28. The bank points to persistent energy costs and growing price pressures as reasons for the increase. Its economic outlook forecasts Canadian growth of one per cent in 2026 and two per cent in both 2027 and 2028. Those figures are forecasts, not completed results. The bank also warns that the outlook remains uncertain, particularly around Canada–U.S. trade and developments in the Middle East. For readers following business conditions, the release explains both the decision and the risks behind its projections.
