Bank of Canada Policy Interest Rate Update September 2, 2026
The Bank of Canada held its policy rate at 2.25% on September 2 — the eighth straight hold since the last cut in October 2025
Rohit SharmaRealtor · October 18, 2026 · 1 min read
The Bank of Canada held its policy rate at 2.25% on September 2 — the eighth straight hold since the last cut in October 2025, with inflation at 3.0% keeping policymakers in wait-and-see mode. All eyes now turn to the October 28 decision, with September's inflation report landing October 19.
Bank of Canada Rate DecisionSep 2, 2026
Target for the overnight rate · announced Sep 2, 2026
- BoC target rate2.25%Held — no change
- Prime rate4.45%
- 5-yr bond yield3.42%
- Inflation (CPI YoY)3.1%Outside 1–3% target band
Target rate · 3-year trend
What it means
On Sep 2, 2026, the Bank of Canada held its target rate at 2.25%. 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 3.42%) more than the announcement itself.
What to watch
A hold keeps borrowing costs where they are. The next move hinges on inflation: a hot CPI print revives hike talk, a cool one opens the door to cuts.
Source: Bank of Canada Valet API
Live rate trackerCommon questions
What is the Bank of Canada’s policy rate after the September 2 meeting?
It is 2.25%, as the bank held the rate at that level on September 2.
How many times in a row has the Bank of Canada kept its policy rate unchanged?
Eight straight holds, marking the eighth consecutive meeting since the last cut.
When did the Bank of Canada last cut its policy rate before the recent holds?
The last cut was in October 2025, before the series of holds began.
What is the current inflation rate that’s influencing the Bank of Canada’s stance?
Inflation is at 3.0%, which is keeping policymakers in a wait‑and‑see mode.
When is the Bank of Canada’s next policy decision and what data is expected beforehand?
The next decision is on October 28, after the September inflation report is released on October 19.