Insights · Money Globe X Research · October 25, 2026

Bank of Canada Interest Rate Now: 2.25% and Next Decision Date

Key points

• The Bank of Canada policy rate is 2.25% as of October 25, 2026, the same as the prior reading.
• The next rate announcement is scheduled for October 28, 2026. The one after is December 9, 2026.
• Canadian inflation was 3.09% in September 2026, above the 2.25% policy rate.
• The 5-year conventional mortgage rate was 6.19% as of October 21, 2026.

What is the Bank of Canada's rate right now?

The Bank of Canada policy rate is 2.25%. The latest reading is dated October 22, 2026, and the figure is the same as the reading before it.

The policy rate is the interest rate the Bank sets for overnight lending between big financial institutions. It is the starting point for many other rates. Banks use it as a guide when they set prime rates and variable-rate loans, so changes can reach households through their borrowing costs and savings rates.

Nothing in the latest data shows a change in the policy rate between the last two readings. The number stayed at 2.25%.

When is the next Bank of Canada decision?

The next announcement is on October 28, 2026. That is three days after the date of this article. The Bank lists it as the Interest Rate Announcement and Monetary Policy Report.

The Monetary Policy Report is a longer document. It lays out how the Bank sees the economy, including growth and inflation. Not every announcement comes with one.

The following scheduled announcement is on December 9, 2026, which is 45 days from October 25. It is listed as an Interest Rate Announcement.

The US Federal Reserve also has a decision on October 28, 2026. Its next one after that is December 9, 2026, the same day as the Bank of Canada's.

The numbers around the rate

Inflation is the pace at which prices rise over time. Canada's Consumer Price Index (CPI), a basket of everyday goods and services, was up 3.09% from a year earlier in September 2026. The reading before it was 3.03%.

The policy rate is 2.25%, which is lower than inflation. The gap is called the real policy rate: the policy rate minus inflation. It stands at −0.84%. A negative real rate means the policy rate is below the pace of price increases.

The job market also shows some movement. The unemployment rate was 6.5% in September 2026, up from 6.4% in the prior reading.

On growth, real GDP, which is the size of the economy after removing the effect of price changes, was up 1.42% from a year earlier in July 2026. The prior reading was 2.09%. On a month-over-month basis, GDP was flat in July, compared with a gain of 0.37% in the previous month.

How the policy rate links to mortgages and bonds

The policy rate is not the same as a mortgage rate. The 5-year conventional mortgage rate was 6.19% as of October 21, 2026, unchanged from the reading before. A conventional mortgage is one with a down payment of at least 20% of the home price.

Bond yields are the returns investors earn on government bonds. They are shaped by what investors think about rates, inflation and growth over the length of the bond. The 2-year Government of Canada yield was 3.22% as of October 22, 2026, down from 3.32%. The 10-year yield was 3.78%, down from 3.90%.

Both yields are higher than the 2.25% policy rate. That is a fact about where each rate sits today. It is not a forecast of what any of them will do next.

How Canada compares with the United States

The US Federal Reserve's target rate (upper end) is 4.0%, as of October 25, 2026. US CPI inflation was 4.02% in September 2026, up from 3.71% in the prior reading. That makes the US real policy rate −0.02%.

The 30-year US mortgage rate was 7.32% as of October 22, 2026, down from 7.40%. US unemployment was 4.2% in September 2026.

Readers who follow both countries can see the Bank of Canada and the Fed both have announcements on October 28, 2026. You can follow the latest figures on our interest rates data page.

See the live numbers: Interest rates and decision dates · Canada vs US economy · Bond yields · Mortgage calculator (with income needed)

Questions

Educational information only - not financial, investment, tax or legal advice. Figures are as of the date shown and can change.