The Bank of Canada raised its benchmark policy interest rate to 2.50 per cent on October 28, 2026, marking a 25-basis-point increase from 2.25 per cent.
The Bank of Canada raised its benchmark policy interest rate to 2.50 per cent on October 28, 2026, marking a 25-basis-point increase from 2.25 per cent, projecting inflation to remain above 3% through much of 2027. Persistent inflation risks, driven largely by higher and prolonged energy prices stemming from the conflict in the Middle East and rising business cost pressures. Governor Tiff Macklem indicated that further rate increases remain possible if inflationary pressures continue to spread through the economy
Target for the overnight rate · announced Oct 28, 2026 · effective Oct 29, 2026
Target rate · 3-year trend
On Oct 28, 2026, the Bank of Canada raised its target rate by 0.25 points to 2.50%. Inflation (CPI) was running at 3.1% in September 2026 — outside the Bank's 1–3% target band. Variable-rate mortgages and lines of credit priced off prime move with the target rate (prime now 4.45%); fixed rates follow the 5-year bond yield (now 3.62%) more than the announcement itself.
Higher for longer bites variable-rate borrowers first. If inflation stays sticky, expect fixed rates to hold firm too — the next CPI print is the number to watch.
Source: Bank of Canada announcement · Valet API · Prime rate follows bank announcements.
Live rate trackerIt is 2.50 per cent, after the Bank raised it on October 28, 2026.
The increase was 25 basis points, moving the rate from 2.25 per cent to 2.50 per cent.
Inflation is projected to stay above 3 per cent through much of 2027, according to the Bank's outlook.
They stem from higher and prolonged energy prices due to the Middle East conflict and rising business cost pressures.
He said further rate increases remain possible if inflationary pressures continue to spread through the economy.