Bank of Canada Policy Interest Rate Schedule
CURRENT POLICY INTEREST RATE: 2.25% (Updated December 11, 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 (press release)
- Wednesday, December 10 (press release)
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 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 94% probability of a rate hold and a minor 6% 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 2%.
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 December 11, 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 allows you 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 (%) |
|---|---|---|
| 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 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, inflation, overall consumption, housing, exports, imports, and projections of 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.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
