Quick answer
On September 2, 2026, the Bank of Canada held its policy (overnight) rate at 2.25%. Inflation (CPI) was running at 3% (core 2%) and unemployment was 6.5% at the time.
At 2.25% the Bank is already near the bottom of neutral, so Josh’s point is that the next cut only lands if the economy needs rescuing — with inflation stuck near 3% blocking a cut and tariffs blocking a hike, he and Jay say a prepared buyer beats a hopeful one.
The rate path (2024–2026)
The Bank of Canada policy rate over the 2½ years around this decision. It sat at 2.25% here.
Inflation vs the 2% target
Total CPI and the Bank's core measure against its 2% target — the “why” behind the decision. Inflation was 3% at the time.
Heads up: this covers the decision on September 2, 2026. Rates move constantly — for the rate and options that apply to you today, book a call.
Frequently asked
Did the Bank of Canada cut interest rates on September 2, 2026?
No — on September 2, 2026 the Bank of Canada held its policy (overnight) rate at 2.25%.
What was the Bank of Canada's policy rate in September 2026?
2.25% — the target for the overnight rate, with inflation (CPI) around 3%.
What does a rate hold mean for my mortgage?
If you're in a variable-rate mortgage, a cut lowers your rate (and payment or the interest portion) right away, while a hold leaves it unchanged. If you're on a fixed rate, it matters most at renewal. For what it means for your specific situation, book a call with Josh.