In brief
As of July 24, 2026, the Bank of Canada policy (target overnight) rate is 2.25%, unchanged since October 30, 2025. The prime rate stands at 4.45%. Source: Bank of Canada.
Current rates
The next decisions
Announcement dates already scheduled by the Bank of Canada (09:45 ET). The rate may then be lowered, raised or held.
- with Monetary Policy Report
The decision history
Each row is a Bank of Canada decision: the date, the policy rate set, and the move (cut, hike or hold). The calendar has eight fixed announcements per year.
- RPM 2.25% held
- 2.25% held
- RPM 2.25% held
- 2.25% held
- RPM 2.25% held
- 2.25% cut 25 bps
- 2.50% cut 25 bps
- 2.75% cut 25 bps
- 3.00% cut 25 bps
- 3.25% cut 50 bps
- 3.75% cut 50 bps
- 4.25% cut 25 bps
- 4.50% cut 25 bps
- 4.75% cut 25 bps
- 5.00% hike 25 bps
- 4.75% hike 25 bps
- 4.50% hike 25 bps
- 4.25% hike 50 bps
- 3.75% hike 50 bps
- 3.25% hike 75 bps
- 2.50% hike 100 bps
- 1.50% hike 50 bps
- 1.00% hike 50 bps
- 0.50% hike 25 bps
- 0.25% starting point
Who sets this rate, and when
The policy rate is set by the Bank of Canada’s Governing Council, the country’s central bank. It is the target for the overnight rate — the rate at which major financial institutions lend funds to one another overnight. It anchors the cost of money across Canada.
Decisions land on fixed dates announced in advance: eight times a year, roughly every six weeks. At each announcement the Bank raises, lowers or holds the rate based on its read of inflation and the economy. Between announcements the rate does not move (barring exceptional circumstances) — which is why the table above only changes on those dates.
Policy, prime, mortgage: don’t confuse them
Policy rate. The Bank of Canada’s rate, above. It is the reference point, not a rate you pay directly.
Prime rate. Commercial banks’ base rate for their best clients. It tracks the policy rate almost one-for-one, generally about 2.2 points above it. Prime drives variable-rate loans and lines of credit: your variable rate is often quoted as “prime minus X”.
Mortgage rates. What you actually pay. Variable rates move with prime (so with the policy rate). Fixed rates instead track the bond market (Government of Canada bond yields) and can therefore move before a Bank decision, in anticipation. The barometer figures above are financial-system averages published by the Bank of Canada — a benchmark, not any lender’s offer.
What the policy rate changes for your mortgage
When the policy rate falls, prime falls with it: if you hold a variable-rate loan, your interest cost drops (or more of your payment goes to principal, depending on your contract). When it rises, the reverse. A fixed-rate loan does not move during the term — but the rate you get at renewal will reflect the environment then.
That is why the fixed-or-variable choice depends as much on your risk tolerance as on the path of rates — and why comparing contracts, not just posted rates, makes a real difference over time.
Frequently asked questions
What is the Bank of Canada policy rate today?
As of July 24, 2026, the Bank of Canada policy (target overnight) rate is 2.25%, unchanged since October 30, 2025. The prime rate stands at 4.45%. Source: Bank of Canada.
How often does the policy rate change?
The Bank of Canada announces its decision on eight fixed dates a year, roughly every six weeks. The rate only changes on those dates (barring exceptional circumstances); it can be raised, lowered or held.
Is the policy rate the same as my mortgage rate?
No. The policy rate is the central bank’s reference rate. Your variable mortgage rate follows the prime rate (tied to the policy rate); your fixed rate instead follows the bond market. The mortgage rates shown here are system averages, not an offer: your rate depends on your file and lender.
Where do these figures come from?
Directly from the Bank of Canada (Valet API), at the observation date shown for each rate. Payotte compiles and formats; the data remains the Bank of Canada’s.
Figures refreshed with each Bank of Canada release; every rate carries its own observation date.
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