Key takeaways:
- The Bank of Canada’s policy interest rate is 2.25%, set at the decision announced on October 29, 2025.
- The prime rate the Bank of Canada publishes is 4.45% (as of September 30, 2026).
- The next scheduled rate announcement is October 28, 2026.
The interest rate most Canadians mean by “the Canadian interest rate” is the Bank of Canada’s policy interest rate, officially the target for the overnight rate. This page gives today’s value and the other rates that follow it; the rest of the Canadian interest rate guides cover the decision dates, the full history and what changes mean for savers.
| Metric | Value |
|---|---|
| Current target overnight rate | 2.25% (effective October 29, 2025) |
| Bank Rate | 2.5% (effective October 29, 2025) |
| Cycle peak (since 2009) | 5% (reached July 12, 2023) |
| Next scheduled announcement | October 28, 2026 |
Source: Bank of Canada Valet API, series V39079 (target rate) and BR.CDN (Bank Rate), fetched 2026-10-02, as of October 1, 2026.
The rate was last changed at the announcement of October 29, 2025. Since 2021, a change takes effect the day after it is announced. The cycle peak in the table, 5.00%, was reached on July 12, 2023. Every change since the Bank’s online series begins is listed in the Bank of Canada rate history.
When the rate is next set
The Bank sets the rate on eight fixed dates a year. The next is October 28, 2026. This year’s dates, which of them come with a Monetary Policy Report, and each decision so far are on the Bank of Canada rate announcement schedule.
The bank rate and the deposit rate
The policy rate sits inside an operating band 30 basis points wide. The bank rate, the top of the band, is what the Bank charges financial institutions to borrow overnight: 2.50%. The deposit rate, the bottom, is what it pays on their overnight deposits: 2.20%, 5 basis points under the policy rate. Until January 2025, the deposit rate was set equal to the target rate. Consumers rarely deal with either rate directly.
The rates that follow it
| Rate | How it relates to the policy rate | Where to find it |
|---|---|---|
| Prime rate | Each bank sets its own; it usually moves when the policy rate moves | Canada prime rate |
| Savings account rates | Set by each institution; they tend to follow the policy rate after a lag | Savings account rates by institution |
| GIC rates | Priced off both the policy rate and bond yields for the same term | GIC rates |
| Variable mortgage and HELOC rates | Priced relative to the lender’s prime rate | How prime prices variable borrowing |
| Fixed mortgage rates | Follow Government of Canada bond yields more than the policy rate | Bond yields and fixed rates |
Savers feel a decision through their savings account and new GIC rates; the page on how rate changes affect savings explains how quickly each one moves. For borrowers, the Bank of Canada policy rate guide covers how a decision travels to fixed and variable mortgages.
Where the rate may go next
The Bank sets the rate to keep inflation near its 2% target, so inflation, employment and growth data shape each decision. Bank economists publish dated forecasts of the policy rate; the interest rate forecast page collects them.
Related pages
- Bank of Canada rate announcement schedule: this year’s dates and decisions
- Bank of Canada rate history: every policy rate change in the Bank’s series
- Canada prime rate: today’s prime and its history
- How rate changes affect savings: HISAs, GICs and bonds
- GIC calculator and mortgage calculator
Sources
The figures and rules on this page come from these sources, last checked against them on October 2, 2026. How we check facts.
- Bank of Canada: Key interest rate
- Bank of Canada: Understanding policy interest rate
- Bank of Canada: Inflation