Bank of Canada policy interest rate캐나다 중앙은행 기준금리

What is it?

The Bank of Canada is Canada’s central bank. It is not a regular bank; it is the public institution that protects the value of money by keeping inflation low. Its main tool for that is the target for the overnight rate, usually called the policy rate or the key interest rate.

The overnight rate is the rate financial institutions charge each other for one-day loans. The public cannot borrow in that market, but by moving this rate the Bank influences mortgages, lines of credit and savings rates. The Bank describes it as "the starting point for setting many of the interest rates in the economy that matter for Canadians."

What is the rate now?

On October 28, 2026 the Bank of Canada raised the policy rate by 0.25 percentage points to 2.50%. Since 2021, a change takes effect the day after it is announced.

These figures were checked on October 30, 2026. They can change at every announcement, so confirm the latest value on the Bank of Canada website.

How has it moved recently?

These are the recent decisions listed on the Bank of Canada’s policy rate page. After two cuts in September and October 2025 the rate stayed at 2.25% for almost a year, then rose in October 2026.

For the October 2026 decision, the Bank said it raised the rate to reduce the risk that high energy prices spread to other prices, and that it may raise again but will proceed carefully.

When is it announced? Eight fixed dates

Since 2000 the Bank has announced the rate on eight fixed dates a year. Announcements are at 9:45 a.m. Eastern time, and in January, April, July and October the Bank also publishes its Monetary Policy Report. The only date left in 2026 is December 9. The 2027 schedule is:

• January 27, 2027 (with Monetary Policy Report)
• March 3, 2027
• April 28, 2027 (with Monetary Policy Report)
• June 2, 2027
• July 21, 2027 (with Monetary Policy Report)
• September 8, 2027
• October 27, 2027 (with Monetary Policy Report)
• December 8, 2027

In special circumstances (for example, March 2020 during COVID-19) the Bank can change the rate outside the schedule.

What does it do to my mortgage?

Variable-rate mortgages and HELOCs (home equity lines of credit, a credit line secured by your home): the Bank says the policy rate affects "the prime rate of commercial banks (used for loans such as mortgages and lines of credit)". When the policy rate changes, each bank usually changes its prime rate by a similar amount, and a variable rate written as "prime minus 0.5%" follows. No law links the two, though; each bank sets its own prime.

Fixed-rate mortgages: the Bank says plainly that it "doesn’t set mortgage rates". A fixed rate depends mostly on the lender’s funding cost (what it pays to raise the money), which moves with the interest rates paid to depositors and investors in Canada and other countries. So fixed rates can rise or fall while the policy rate stays put, and a policy cut does not always bring fixed rates down. The Bank notes that a policy change affects long-term rates mainly when people expect it to last.

A fixed-rate mortgage you already have does not change until the term ends. What moves are variable rates and the rates on new or renewing mortgages.

Why does the Bank raise or lower it?

The Bank’s goal is to keep inflation (the rise in prices) near 2%, inside a target range of 1 to 3%. If the economy is weak and inflation could fall well below 2%, the Bank lowers the rate so borrowing gets cheaper and people spend more. If the economy is running too hot and inflation is rising, it raises the rate so borrowing costs more and spending slows.

In October 2026 the Bank said inflation had been around 3% since April and was expected to reach about 3.5% by year end. That is why it raised the rate.

Example calculation

Suppose you have a $500,000 variable-rate mortgage, and the policy rate rises by 0.25 percentage points, so your bank’s prime also rises by 0.25 percentage points.

An estimate for reference only. With a variable mortgage that has fixed payments, the monthly payment does not change right away; less of it goes to principal instead. See "Fixed vs variable rate".

What to watch out for

• The policy rate is not your mortgage rate. Your lender sets your rate.
• Before each announcement there is a lot of news and prediction, but nobody knows the decision until it is published. Do not rush or delay a big decision based on forecasts.
• If you choose a variable rate, first check that you could still pay if the policy rate rose by 1 to 2 percentage points. That is what the stress test is for.
• Fixed rates are set by lenders, so they can change on days with no announcement. A pre-approval often comes with a rate hold, so check how long it lasts and what conditions apply.