Bank of Canada Policy Interest Rate Schedule 2026
CURRENT POLICY INTEREST RATE: 2.25% (Updated December 18, 2025)
Whether you’re a homeowner, homebuyer, or are just looking to own some real estate, you’ve probably heard of the Bank of Canada’s interest rate announcements and the anticipation surrounding them.
This post will examine the Bank of Canada’s interest rate announcements, why they occur, and the dates of the 2026 rate announcements.
Key Takeaways
- As the country’s central bank, the Bank of Canada is responsible for setting the target to the overnight rate, also known as the policy interest rate.
- The target overnight rate represents the starting point for all interest rates in the country.
- Bank of Canada policy rate announcements follow a predetermined schedule 8 times each year.
What to Expect from a Bank of Canada Announcement
The Bank of Canada is responsible for the nation’s monetary policy. Part of this job is setting the target for the overnight rate, also known as the policy interest rate. When headlines refer to the “Bank of Canada announcement,” they typically mean any changes to this rate by the BoC.
The target overnight rate serves as the benchmark for all interest rates in the country, including the prime rate set by banks and lenders. When the BoC rate changes, all variable and adjustable mortgage rates change accordingly.
Bank of Canada Interest Rate Announcement Schedule
Bank of Canada rate announcements follow a set schedule for the entire year. Here is the Bank of Canada interest rate announcement schedule.
Announcement Dates 2026
- Wednesday, January 28
- Wednesday, March 18
- Wednesday, April 29
- Wednesday, June 10
- Wednesday, July 15
- Wednesday, September 2
- Wednesday, October 28
- Wednesday, December 9
Announcement Dates 2025
- Wednesday, January 29 (press release)
- Wednesday, March 12 (press release)
- Wednesday, April 16 (press release)
- Wednesday, June 4 (press release)
- Wednesday, July 30 (press release)
- Wednesday, September 17 (press release)
- Wednesday, October 29 (press release)
- Wednesday, December 10 (press release)
Where Rates Stand in December 2025
The Bank of Canada’s (BoC) latest announcement, made on December 10th, was a policy interest rate hold, keeping the rate at 2.25%.
The Governing Council decided to maintain the policy rate, citing a resilient economy. The Bank expects economic growth to pick up in 2026, even as uncertainty remains high and there may be some quarterly volatility in trade. Employment has shown signs of improvement with employment gains over the past three months, and the unemployment rate has declined.
The Governing Council determined that the policy rate is at the right level to keep inflation close to the 2% target and help the economy through this period of adjustment. However, uncertainty remains high, and the Bank is prepared to respond if the outlook changes.
Bank Of Canada Interest Rate Predictions for January 2026
On December 10, the Bank of Canada (BoC) left its overnight policy rate unchanged at 2.25% as the economy showed surprisingly strong momentum. The prime rate was left unchanged at 4.45%. Our mortgage rate forecast expects no further easing, with bond markets now assigning a higher probability of a rate hike by the end of 2026. Read the current Monetary Policy Decision Press Conference Opening Statement and our post-rate announcement insights.
Canada’s economy showed “surprisingly strong” momentum in the third quarter, with GDP up 2.6% even as final domestic demand was flat and trade volatility drove most of the gain. The labour market has “shown solid gains,” pushing unemployment down to 6.5%, although hiring intentions remain muted and trade-sensitive sectors are still adjusting. Inflation continues to evolve “largely as expected.” CPI slowed to 2.2% in October, and underlying inflation remains around 2.5%, with ongoing economic slack expected to keep price growth “close to the 2% target.”
“If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond,” stated Gov. Tiff Macklem. He emphasized that the Bank is focused on ensuring Canadians maintain “confidence in price stability through this period of global upheaval.” By holding the policy rate at 2.25%, the Bank signalled that policy is now set at “about the right level,” reinforcing that further easing is unlikely unless the outlook materially shifts.
Bond futures markets are now pricing another 99% probability of a rate hold and a minor 1% probability of a rate cut at the Bank of Canada’s policy rate announcement on January 28. By the March 18 policy interest rate announcement, the chance of a 25-basis-point (0.25%) cut will diminish to 1%.
Should We Expect Rates to Increase in 2026?
Early forecasts suggest we are unlikely to see any meaningful changes in interest rates in 2026. With economic uncertainty persisting, policymakers are focused on keeping inflation within the 2% target. The more realistic scenario is a prolonged hold rather than a sharp rate increase.
However, if inflation accelerates or economic growth comes in higher than expected, the Bank of Canada has made clear that future decisions will remain data-dependent, based on inflation trends, wage growth, and global economic conditions.
Today’s Best Mortgage Rates as of December 18, 2025
Where to Find the Bank of Canada’s Historical Interest Rate Changes
The Bank of Canada lists the last 12 interest rate changes and allows users to view how rates have changed over the past 10 years. It’s evident that these changes directly affect the country’s housing market and affordability, but learning to manage your expectations regarding BoC rate changes is key, especially if you are planning to enter the real estate market.
| Date | Target (%) | Change (%) |
|---|---|---|
| December 10, 2025 | 2.25 | No Change |
| October 29, 2025 | 2.25 | -0.25 |
| September 17, 2025 | 2.50 | -0.25 |
| July 30, 2025 | 2.75 | No Change |
| June 4, 2025 | 2.75 | No Change |
| April 16, 2025 | 2.75 | No Change |
| March 12, 2025 | 2.75 | -0.25 |
| January 29, 2025 | 3.00 | -0.25 |
| December 11, 2024 | 3.25 | -0.50 |
| October 23, 2024 | 3.75 | -0.50 |
| September 4, 2024 | 4.25 | -0.25 |
| July 24, 2024 | 4.50 | -0.25 |
| June 5, 2024 | 4.75 | -0.25 |
| April 10, 2024 | 5.00 | No Change |
| March 6, 2024 | 5.00 | No Change |
| January 24, 2024 | 5.00 | No Change |
| December 6, 2023 | 5.00 | No Change |
| October 25, 2023 | 5.00 | No Change |
| September 6, 2023 | 5.00 | No Change |
| July 12, 2023 | 5.00 | +0.25 |
Where to Find the Bank of Canada’s Monetary Policy Reports
When the Bank of Canada announces its policy rate, it also releases a quarterly monetary policy report. These reports assess both the global and Canadian economies and summarize the reasoning behind the Bank of Canada’s decisions.
The data presented covers a wide range of perspectives, including the Canadian dollar’s exchange rate, inflation, overall consumption, housing, exports, imports, and projections for future economic performance.
Final Thoughts
The Bank of Canada’s policy rate decisions directly affect the country’s housing market, which in turn affects housing affordability. By managing your expectations in light of upcoming BoC rate changes, you’ll be in a much better position, especially if you’re looking to enter the real estate market soon.
For more personalized advice that better matches your financial circumstances, contact one of nesto’s mortgage experts, who can help you understand what changes in interest rates mean for your mortgage qualifying amount.
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