Mortgage Basics #Featured articles
Mortgage Basics #Featured articles
Bank of Canada Policy Interest Rate Schedule
Table of contents
CURRENT POLICY INTEREST RATE: 2.75% (Updated September 17, 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 rate announcement dates in 2025.
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 mention the “Bank of Canada announcement,” they typically refer to any changes made to this rate by the BoC.
The target overnight rate serves as the benchmark for all interest rates in the country, including the prime rates set by banks and lenders, commonly referred to as the prime rate. When the BoC rate changes, all variable and adjustable mortgage rates change accordingly.
Bank of Canada Interest Rate Announcement Schedule
The Bank of Canada’s rate announcements follow a set schedule throughout the year. Here is the Bank of Canada interest rate announcement schedule.
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
- Wednesday, December 10
Announcement Dates 2024
- Wednesday, January 24 (press release)
- Wednesday, March 6 (press release)
- Wednesday, April 10 (press release)
- Wednesday, June 5 (press release)
- Wednesday, July 24 (press release)
- Wednesday, September 4 (press release)
- Wednesday, October 23 (press release)
- Wednesday, December 11 (press release)
Where Rates Stand in September 2025
The Bank of Canada’s (BoC) latest announcement, made on September 17th, was a policy interest rate cut, lowering the rate to 2.75%. This continues the BoC easing cycle, as global economic growth shows signs of slowing.
The Governing Council decided to hold the rate due to a weaker economy and less upside risk to inflation. Canada’s GDP declined in Q2 due to tariffs and trade uncertainty weighing on economic activity. Employment has declined with job losses concentrated primarily in trade-sensitive sectors. Employment growth has slowed, and the unemployment rate reached 7.1% in August.
The BoC stated that it is proceeding with caution, paying attention to the risks and uncertainties in the economy. The Governing Council decided that a reduction in the policy rate, bringing it to 2.50% was the right move to better balance risk.
Bank Of Canada Interest Rate Predictions for October 2025
On July 30, the Bank of Canada (BoC) held Canada’s overnight policy rate at 2.75%, leaving mortgage lenders’ prime rates unchanged at 4.95%. The Bank of Canada is holding its policy rate steady due to lingering inflation and mixed economic signals. Our mortgage rate forecast predicts the Bank of Canada to lower rates further, but only if the economy continues to weaken and trade-related cost pressures ease. Read the current Bank of Canada press release and our post-rate announcement insights.
Bond futures markets are now pricing another 8% probability of no change and a 92% probability of a 25 basis point (0.25%) rate cut at the Bank of Canada’s policy rate announcement on September 17. By the October 29 policy interest rate announcement, the likelihood of a rate cut will change to a 53% chance of a 25-basis-point (0.25%) cut.
Should We Expect Rate Increases in 2025?
While the Bank of Canada’s effort to control inflation continues, rate increases in 2025 are unlikely. Most economists are pricing further rate cuts for the year, which is always subject to change based on inflation, employment, and GDP data released over the coming months.
Today’s Best Mortgage Rates as of September 17, 2025
Where to Find the Bank of Canada’s Historical Interest Rate Changes
The Bank of Canada lists the last 12 historical interest rate changes and offers the option to look up how rates have changed over the past 10 years. These changes directly affect the country’s housing market and affordability, but learning to manage your expectations concerning the BoC rate changes is key, especially if you are planning to enter the real estate market.
| Date | Target (%) | Change (%) |
|---|---|---|
| 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 |
| June 7, 2023 | 4.75 | +0.25 |
| April 12, 2023 | 4.50 | No Change |
Where to Find the Bank of Canada’s Monetary Policy Reports
When the Bank of Canada makes policy rate announcements, it also releases a quarterly monetary policy report. These reports provide an assessment of both the global and Canadian economies, summarizing the reasoning behind the Bank of Canada’s decisions.
The data presented encompasses a wide range of perspectives, including the status of the Canadian dollar, the state of 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 trickles down to 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 today, who can help you understand what changes in interest rates mean for your mortgage qualifying amount.
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