Bank of Canada Policy Interest Rate Schedule 2026
CURRENT POLICY INTEREST RATE: 2.50% (Updated November 9, 2026)
Whether you’re a homeowner, a homebuyer, or just looking to buy real estate, you’ve probably heard of the Bank of Canada’s interest rate announcements and the anticipation around them.
This post will examine the Bank of Canada’s interest rate announcements, why they occur, and the dates of the 2026 and 2027 rate announcements.
Key Takeaways
- As the country’s central bank, the Bank of Canada sets the target for the overnight rate, also known as the policy interest rate.
- The target overnight rate is the starting point for interest rates across the country.
- Bank of Canada policy rate announcements follow a predetermined schedule, 8 times each year.
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What to Expect from a Bank of Canada Announcement
The Bank of Canada sets 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.
Every announcement lands at 9:45 a.m. ET on a Wednesday, and each one sets 3 rates at once. The policy rate is the headline number at 2.50%. The Bank Rate, which is what the Bank charges financial institutions for overnight borrowing, sits a quarter of a percentage point above it. The deposit rate, paid on settlement balances, sits 5 basis points below it. Four of the 8 annual announcements also carry the quarterly Monetary Policy Report and a press conference with the Governor and Senior Deputy Governor at roughly 10:30 a.m. ET.
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 publishes its rate announcements on a set schedule for the year in advance. Here is the Bank of Canada interest rate announcement schedule.
Announcement Dates 2026
- Wednesday, January 28 (press release)
- Wednesday, March 18 (press release)
- Wednesday, April 29 (press release)
- Wednesday, June 10 (press release)
- Wednesday, July 15 (press release)
- Wednesday, September 2 (press release)
- Wednesday, October 28 (press release, with Monetary Policy Report)
- Wednesday, December 9 (next decision)
Announcement Dates 2027
The Bank published its 2027 schedule in July 2026. The Monetary Policy Report accompanies the January, April, July and October decisions.
- Wednesday, January 27 (with Monetary Policy Report)
- Wednesday, March 3
- Wednesday, April 28 (with Monetary Policy Report)
- Wednesday, June 2
- Wednesday, July 21 (with Monetary Policy Report)
- Wednesday, September 8
- Wednesday, October 27 (with Monetary Policy Report)
- Wednesday, December 8
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 October 2026
The Bank of Canada (BoC) raised its policy interest rate by 25 basis points to 2.50% on October 28, its first increase since July 2023. The move ended a run of seven consecutive holds at 2.25% that began in December 2025. October was a Monetary Policy Report month, so the decision came with a full set of new projections.
The Governing Council raised the rate “to reduce the risk that continuing high energy prices spread broadly to the prices of other goods and services.” CPI inflation has been around 3% since April and reached 3.1% in September. Excluding gasoline, it was 2.2%, and the core measures stayed close to 2% (CPI-trim 1.8%, CPI-median 1.9%). The Bank Rate is now 2.75% and the deposit rate 2.45%.
The new projections put inflation at about 3½% by the end of 2026 and an average of 3% in 2027, one percentage point above the July outlook. The Bank does not expect inflation to return to 2% until mid-2028. The Bank said: “Near-term household and business inflation expectations have risen, while longer-term inflation expectations remain well anchored.” It named energy prices and Canada-US trade as the two most important risks to its outlook.
Growth is slowing after a strong spring. GDP grew at an annualised 3.3% in the second quarter, but the Bank expects about 2% in the third quarter and below 1% in the fourth. Unemployment has been around 6.5% for several months, and the Bank still sees some excess supply in the economy. It expects housing to remain relatively weak as affordability constraints, slow population growth and rising borrowing costs weigh on demand.
The next decision is Wednesday, December 9, 2026. It will not come with a Monetary Policy Report, so the next full forecast arrives on January 27, 2027.
Bank of Canada Interest Rate Predictions for December 2026
On October 28, the Bank of Canada raised its target for the overnight rate by 25 basis points to 2.50%, its first increase since July 2023 after seven consecutive holds. The big banks raised prime by the same amount, to 4.70%, effective October 29. The Bank said growth picked up through the middle of the year, with GDP up 3.3% in the second quarter and about 2% in the third. Statistics Canada’s October 30 data came in softer: real GDP was essentially unchanged in August, and industry figures point to 0.3% third-quarter growth, about 1.3% annualised. The unemployment rate rose to 6.7% in October, after holding around 6.5% for several months. CPI inflation was 3.1% in September; excluding gasoline, it was 2.2%, and core inflation remains close to 2%. The Bank now expects inflation to rise to about 3.5% by the end of the year, average 3% in 2027 and fall to 2% by mid-2028. Governor Tiff Macklem explained the decision:
In September, the Bank held while weighing two risks pulling in opposite directions. This time it acted on the first: energy prices expected to stay higher for longer and building cost pressures. It left the door open to more: “There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully.” History points the same way: no Bank of Canada tightening cycle since 1997 has ended after a single increase. Bond markets put the odds of a 25-basis-point hike on December 9 at 45%, against 55% for a hold, and imply 99% for a hike by January 27. Read the full Opening Statement, the October Monetary Policy Report and our post-announcement mortgage strategy breakdown to understand what this means for Canada’s mortgage rate forecast.
Should We Expect Rates to Increase Again in 2026?
Forecasts now point to higher rates, not a prolonged hold. The Bank of Canada raised its policy rate to 2.50% on October 28 and said it may need to raise rates further. Only one decision remains in 2026, on December 9, and the Bank will take it one meeting at a time. History argues against a single move. The Bank’s own rate history shows that no tightening cycle since 1997 has ended after one increase; the shortest, in 2010, had 3. Governor Macklem warned as early as April that “there may be a need for consecutive increases in the policy rate” if higher energy prices started to spread.
The direction of policy has turned. Through 2025, the debate was about how much further the Bank would cut; now it is about how far it will raise. The Bank assumes a neutral rate of 2.75%, the midpoint of its 2.25% to 3.25% range, and the policy rate still sits below that midpoint. If energy costs keep spreading into other prices, further increases become more likely. If the tariff drag on growth deepens, the case for pausing grows.
For fixed mortgage rates, bond yields matter more than the policy rate itself. The Bank noted that long-term government bond yields are at their highest in more than a decade across many advanced economies. Fixed pricing follows those yields, so fixed rates can move before the Bank does.
Future decisions will depend on how energy prices, inflation expectations and Canada-US trade evolve. Variable-rate borrowers feel each change through prime right away, while fixed-rate borrowers feel it at renewal.
Today’s Best Mortgage Rates as of November 9, 2026
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. These changes directly affect the country’s housing market and affordability, but managing your expectations about BoC rate changes is key, especially if you plan to enter the real estate market. The table below pairs each decision with the bank prime rate that followed it, since variable mortgages and lines of credit are priced against the prime rate.
| Date | Target (%) | Change (%) | Bank Prime Rate (%) |
|---|---|---|---|
| October 28, 2026 | 2.50 | +0.25 | 4.70 |
| September 2, 2026 | 2.25 | No Change | 4.45 |
| July 15, 2026 | 2.25 | No Change | 4.45 |
| June 10, 2026 | 2.25 | No Change | 4.45 |
| April 29, 2026 | 2.25 | No Change | 4.45 |
| March 18, 2026 | 2.25 | No Change | 4.45 |
| January 28, 2026 | 2.25 | No Change | 4.45 |
| December 10, 2025 | 2.25 | No Change | 4.45 |
| October 29, 2025 | 2.25 | -0.25 | 4.45 |
| September 17, 2025 | 2.50 | -0.25 | 4.70 |
| July 30, 2025 | 2.75 | No Change | 4.95 |
| June 4, 2025 | 2.75 | No Change | 4.95 |
| April 16, 2025 | 2.75 | No Change | 4.95 |
| March 12, 2025 | 2.75 | -0.25 | 4.95 |
| January 29, 2025 | 3.00 | -0.25 | 5.20 |
| December 11, 2024 | 3.25 | -0.50 | 5.45 |
| October 23, 2024 | 3.75 | -0.50 | 5.95 |
| September 4, 2024 | 4.25 | -0.25 | 6.45 |
| July 24, 2024 | 4.50 | -0.25 | 6.70 |
| June 5, 2024 | 4.75 | -0.25 | 6.95 |
| April 10, 2024 | 5.00 | No Change | 7.20 |
| March 6, 2024 | 5.00 | No Change | 7.20 |
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 4 times a year, alongside the January, April, July and October decisions. These reports assess both the global and Canadian economies and summarise the Bank of Canada’s reasoning behind its decisions. The most recent edition, the October 2026 Monetary Policy Report, was published with the October 28 decision; the next arrives on January 27, 2027.
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.
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Frequently Asked Questions (FAQ) About Bank of Canada Rate Announcements
When is the next Bank of Canada interest rate announcement?
The next Bank of Canada interest rate announcement is Wednesday, December 9, 2026, at 9:45 a.m. ET. It is the year’s final decision and does not include a Monetary Policy Report. The first decision of 2027 follows on Wednesday, January 27, with the next quarterly Monetary Policy Report.
Did the Bank of Canada change its interest rate in October 2026?
The Bank of Canada did change its interest rate in October 2026. It raised its policy interest rate by 25 basis points to 2.50% on October 28, 2026, its first increase since July 2023. The increase ended seven consecutive holds at 2.25% that followed the October 29, 2025 cut.
Will the Bank of Canada raise its policy rate at the December 2026 announcement?
The Bank of Canada has not said whether it will raise its policy rate again at its December 9, 2026 announcement. On October 28, it said: “There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully.” The Bank ranks energy prices and Canada-US trade as the two most important risks to that decision.
How often does the Bank of Canada change interest rates?
The Bank of Canada announces its policy interest rate 8 times a year on fixed dates, always on a Wednesday at 9:45 a.m. ET. Four of those announcements include the quarterly Monetary Policy Report and a press conference with the Governor and Senior Deputy Governor.
What is the difference between the policy rate, the Bank Rate and the deposit rate?
The policy interest rate is the Bank’s target for the overnight rate and currently sits at 2.50%. The Bank Rate, charged to financial institutions for overnight borrowing, is 0.25 percentage points higher. The deposit rate, paid on settlement balances, is 5 basis points lower. All 3 move together, and lenders use the policy rate to set their prime rate.
How does a Bank of Canada announcement affect my mortgage?
A Bank of Canada announcement affects your mortgage in 2 ways. If you hold a variable-rate mortgage (VRM) or an adjustable-rate mortgage (ARM), lenders adjust their prime rate within a day or two, and your interest cost follows. If you hold a fixed-rate mortgage, nothing changes until your term ends, because fixed pricing follows Government of Canada bond yields rather than the policy rate.
Can the Bank of Canada change rates outside its scheduled dates?
The Bank of Canada does make unscheduled announcements at any time in response to a major or unexpected economic shock, as it did in March 2020. Unscheduled moves are rare, and all 8 regular decisions each year follow the published calendar.
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 around 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 personalised advice that better matches your financial circumstances, contact nesto mortgage experts, who can help you understand what changes in interest rates mean for your mortgage qualifying amount.
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