# Bank of Canada sees inflation above 3% through much of 2027

> The Bank of Canada's October 2026 Monetary Policy Report projects inflation to stay above 3% through much of 2027, and to return close to 2% by mid-2028. Growth is projected at 2% in 2027 and 2028.

- Canonical URL: https://forextradingcommunity.com/news/bank-of-canada-inflation-above-3-through-2027/
- Type: Central banks
- Published: 2026-11-03
- Updated: 2026-11-03
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: CAD

The Bank of Canada published its Monetary Policy Report on 28 October 2026, the day it raised its overnight rate target by 25 basis points to 2.5%. The report states that inflation in Canada is projected to remain above 3% through much of 2027, which the Bank describes as materially higher than previously forecast. It then returns close to 2% by the middle of 2028. The Bank projects growth to strengthen to 2% in 2027 and 2028 ([Bank of Canada, Monetary Policy Report, October 2026](https://www.bankofcanada.ca/publications/mpr/mpr-2026-10-28/)).

## What the report says, as published

- **Inflation**: above 3% through much of 2027, then close to 2% by mid-2028
- **Real GDP growth**: 2% in 2027 and in 2028
- **Policy rate**: the overnight rate target was raised to 2.5% on 28 October

These are the Bank's own projections, not FTC's view. The decision itself is in [Bank of Canada raises its rate to 2.50% on 28 October](/news/bank-of-canada-raises-rate-to-2-50-percent-october-2026/).

## Sources

- [Bank of Canada: Monetary Policy Report, October 2026](https://www.bankofcanada.ca/publications/mpr/mpr-2026-10-28/)

## Common questions

### What does the Bank of Canada project for inflation in 2027?

Inflation is projected to remain above 3% through much of 2027, according to the Bank's October 2026 Monetary Policy Report.

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