Bank of Canada Policy Interest Rate Schedule 2026
CURRENT POLICY INTEREST RATE: 2.25% (Updated September 11, 2026)
Whether you’re a homeowner, a homebuyer, or 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 and 2027 rate announcements.
Key Takeaways
- As the country’s central bank, the Bank of Canada is responsible for setting the target for 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.
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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.
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 2.25%. 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 rate announcements follow a set schedule for the entire year, published the previous August. 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 (with Monetary Policy Report)
- Wednesday, December 9
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 September 2026
The Bank of Canada’s (BoC) latest announcement, made on September 2nd, was a policy interest rate hold for a seventh consecutive time, keeping the rate at 2.25%. September was not a Monetary Policy Report month, so the decision came with a press release and a press conference rather than a fresh set of projections. The next full forecast arrives with the October 28 announcement.
The Governing Council judged that the economy and inflation had evolved broadly as forecast in July, which is why the policy rate was left alone. It described the recovery as broadening, pointing to second-quarter GDP growth of 3.3%, solid consumer spending, a rebound in housing activity, and sharp gains in exports and business investment. The unemployment rate had edged down to 6.4% in July, though the Bank noted that labour demand remains subdued and the economy still carries excess supply.
The balance of risks shifted, however. CPI inflation has hovered around 3% for several months due to persistently high gasoline prices. Excluding gasoline, it was 2.2% in July, with core measures near 2%. With the conflict in the Middle East ongoing, shipments through the Strait of Hormuz still curtailed and refinery margins elevated, the Bank said upside risks to its inflation forecast have increased. At the same time, new US tariffs and Canadian countermeasures have made growth prospects less certain. Governing Council gave no forward guidance beyond a readiness to adjust monetary policy as needed.
The first data to arrive after the decision leaned the other way. Statistics Canada’s Labour Force Survey for August, published September 4, showed employment falling 42,000 against forecasts for a gain of about 15,000, with the unemployment rate holding at 6.4% only because the labour force shrank alongside it. Average hourly wages rose 2.0% from a year earlier, down from 2.8% in July. Softer hiring and cooler wages weaken the case for an increase without building a case for a cut, which is the position the Bank carries into October.
Four dates fill the gap before the October 28 announcement. Canada’s counter-tariffs on about $27.6 billion of American goods took effect September 8. August inflation is published on September 14, and it is the release most likely to show whether price pressures are broadening beyond gasoline. The Bank publishes its summary of deliberations on September 16, which is the closest public view of the Governing Council’s reasoning. September employment data follows on October 9, the last labour reading before the decision.
Bank of Canada Interest Rate Predictions for October 2026
On September 2, the Bank of Canada held its target for the overnight rate at 2.25% for its seventh consecutive decision, leaving the prime rate unchanged at 4.45%. The recovery has broadened since the spring: second-quarter growth came in at an annualised 3.3%, ahead of the Bank’s own 2.5% projection, with gains across consumption, housing, exports and business investment, and unemployment edged down to 6.4% in July, below the 6.5% to 7% range it had occupied since late 2024. Labour demand is still subdued, and the economy is running with excess supply. Inflation has been hovering around 3% year-over-year, held there by gasoline as the blockade of the Strait of Hormuz drags on; excluding gasoline, inflation was 2.2%, and core measures stayed near 2%. Financial conditions have tightened as well, with long-term bond yields moving up globally and in Canada. The Bank still expects inflation to average about 2.5% in the second half of 2026 and return to the 2% target by early 2027. Governor Tiff Macklem was direct about where the balance now sits:
Unlike in July, when the Bank read the risks as broadly balanced, this decision was framed around two risks pulling in opposite directions: persistently high oil prices and spillover into other goods and services, while new US tariffs and Canadian countermeasures make growth prospects less certain. The Governing Council offered no forward guidance beyond a readiness to move if conditions change. Bond markets price a high probability of no change on October 28, with a 27% probability of a 25-basis-point hike. By December 9, markets imply a 98% chance of a hike. Read the full Opening Statement and our post-announcement mortgage strategy breakdown for what this means for Canada’s mortgage rates forecast.
Should We Expect Rates to Increase in 2026?
Forecasts suggest we are unlikely to see any meaningful changes in interest rates in 2026. The Bank of Canada has now held its policy rate at 2.25% for seven consecutive announcements, and with trade uncertainty persisting, policymakers remain focused on keeping inflation close to the 2% target. The more realistic scenario is a prolonged hold rather than a rate change in either direction before year-end.
The direction of the next move has changed, though. Through 2025, the debate was about how much further the Bank would cut. After September’s decision flagged increased upside risk to inflation, market pricing and the major bank forecasts point to a hold for the rest of 2026, with the first increase debated for 2027, rather than a return to cuts. If oil-driven cost pressures spread beyond gasoline, that timeline could move forward. If the tariff drag on growth proves deeper than expected, it could move back.
Market pricing has exceeded the published forecasts. Money markets carry a partial increase for the December 9 decision and price in roughly 100 basis points of increases over the coming 12 months, while most bank economists still see the policy rate frozen at 2.25% through the end of 2026 and the first increase arriving in 2027. Capital Economics has moved its own first-hike call forward from June 2027 to as early as December 2026. The August jobs report cut against that view, and Manulife Investment Management read it as evidence that any signal of imminent increases was premature. That disagreement between money markets and bank economists is unusually wide, and it matters more for fixed mortgage rates than for variable ones, because bond yields follow what the market is pricing rather than what the consensus forecasts.
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.
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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. The table below pairs each decision with the bank prime rate that followed it, since prime is what variable mortgages and lines of credit are actually priced against.
| Date | Target (%) | Change (%) | Bank Prime Rate (%) |
|---|---|---|---|
| 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 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.
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, October 28, 2026, at 9:45 a.m. ET. It arrives with the quarterly Monetary Policy Report, and the year’s final decision follows on Wednesday, December 9.
Did the Bank of Canada change its interest rate in September 2026?
No. The Bank of Canada held its policy interest rate at 2.25% on September 2, 2026, a seventh consecutive hold. The rate has not changed since the cut on October 29, 2025.
Will the Bank of Canada raise its policy rate at the December 2026 announcement?
Most bank economists do not expect the Bank of Canada to raise its policy rate on December 9, 2026, although money markets are pricing in a partial increase for that decision. August inflation, published September 14, and September employment, published October 9, are the 2 releases most likely to settle the question before the October 28 announcement.
How many times a year does the Bank of Canada announce 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 2.25%. The Bank Rate, charged to financial institutions for overnight borrowing, is a quarter of a percentage point higher. The deposit rate, paid on settlement balances, is 5 basis points lower. All 3 move together, and it is the policy rate that lenders use to set their prime rate.
How does a Bank of Canada announcement affect my mortgage?
A Bank of Canada announcement reaches your mortgage through 2 different routes. 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?
Yes. The Bank of Canada can make an unscheduled announcement 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 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 personalised 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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