Mortgage Basics #Featured articles
Mortgage Basics #Featured articles
Bank of Canada Policy Interest Rate Schedule
Table of contents
CURRENT POLICY INTEREST RATE: 2.25% (Updated November 6, 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
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 October 2025
The Bank of Canada’s (BoC) latest announcement, made on October 29th, was a policy interest rate cut, lowering the rate to 2.25%. This continues the BoC easing cycle, as economic growth shows signs of slowing.
The Governing Council decided to reduce the rate due to ongoing economic weakness and inflation that is expected to remain close to the 2% target. 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, with weak hiring, and the unemployment rate remained at 7.1% in September.
The Governing Council determined that a reduction in the policy rate, bringing it to 2.25% was the right move with the current economic weakness and inflation expectations. The BoC stated that if inflation data and economic activity evolve as predicted, the Governing Council believes the current policy rate will be at the right level to keep inflation close to target and help the economy through this period of adjustment. However, if the outlook changes, they are prepared to respond.
Bank Of Canada Interest Rate Predictions for December 2025
On October 29, the Bank of Canada (BoC) lowered its overnight policy rate by 25 basis points to 2.25% to support economic momentum. This brings mortgage lenders’ prime rates down to 4.45%. Our mortgage rate forecast expects no further cuts from the Bank of Canada, as the current policy rate is expected to keep inflation within target. Read the current Bank of Canada press release and our post-rate announcement insights.
Canada’s economy has slowed notably, with GDP contracting by 1.6% in the second quarter as exports and business investment weakened under continued US trade uncertainty. The labour market remains soft, with hiring subdued and unemployment steady at 7.1%, reflecting ongoing losses in trade-sensitive industries. Inflation has moderated, with headline CPI at 2.4% in September and underlying measures near 2.5%, showing gradual progress toward the Bank of Canada’s 2% target. Against this backdrop of sluggish growth, weak trade, and easing price pressures, the Bank projects a gradual recovery.
“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. Governing Council will be assessing incoming data carefully relative to the Bank’s forecast.” – Gov. Tiff Macklem
With this statement, the Bank of Canada hinted that we’ve reached, or are nearing, the end of Canada’s monetary policy easing cycle, making this policy rate cut likely the last this year.
Bond futures markets are now pricing another 9% probability of another 25 basis point (0.25%) rate cut and a 91% probability of a rate hold at the Bank of Canada’s policy rate announcement on December 10. By the January 28 policy interest rate announcement, the likelihood of a rate cut will change to a 4% 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 November 6, 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 (%) |
|---|---|---|
| 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 |
| June 7, 2023 | 4.75 | +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.
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