The Bank of Canada’s decision to hold its overnight rate steady at 2.25% for a seventh consecutive meeting on September 2, 2026, underpins trader sentiment that no rate hike will occur this year. Persistent energy-driven headline inflation near 3% reflects Middle East supply disruptions, yet core measures remain anchored around 2% while GDP shows a modest rebound amid U.S. tariff uncertainty and elevated bond yields. Economists surveyed by Reuters and major banks project the policy rate will stay unchanged through December, with the first potential 25-basis-point increase priced only for 2027. The October 28 Monetary Policy Report and year-end data releases on inflation and growth represent the main near-term catalysts that could shift market-implied odds if underlying price pressures prove more persistent than currently anticipated.