The current prime rate in Canada is 4.95%. This prime rate was made effective April 16, 2025 when the Bank of Canada made the decision to hold the policy rate at 2.75%.
Prime rate change history
The prime rate has changed quite a bit over the past years. Here is a breakdown of all the historical prime rate changes made by the Bank of Canada.
| Effective Date | Prime Rate | Change |
|---|---|---|
| April 16, 2025 | 4.95% | 0.00% |
| March 12, 2025 | 4.95% | -0.25% |
| January 29, 2025 | 5.20% | -0.25% |
| December 11, 2024 | 5.45% | -0.50% |
| October 23, 2024 | 5.95% | -0.50% |
| September 4, 2024 | 6.45% | -0.25% |
| July 24, 2024 | 6.70% | -0.25% |
| June 5, 2024 | 6.95% | -0.25% |
| July 12, 2023 | 7.20% | +0.25% |
| June 8, 2023 | 6.95% | +0.25% |
| January 25, 2023 | 6.70% | +0.25% |
| December 8, 2022 | 6.45% | +0.50% |
| October 27, 2022 | 5.95% | +0.50% |
The prime rate in Canada is known to be the prime lending rate which is the rate used by banks and financial institutions to set the interest rates on their financial products. The prime rate is used in the interest calculation for variable loans and lines of credit. The prime rate is important for determining affordability in Canada.
Prime rate vs. policy interest rate
This graph shows the relationship between the policy interest rate and the prime rate set by the Bank of Canada. As you can see there is a spread between the two rates with the prime rate increasing or decreasing as the policy interest rate increases or decreases.
Policy interest rate change history
These are the historical rates for the policy interest rate in Canada which has a direct impact on the prime rate. As the policy interest rate which is also known as the target for the overnight rage changes, so does the prime rate in Canada.
| Effective Date | Interest Rate | Change |
|---|---|---|
| April 16, 2025 | 2.75% | 0.00% |
| March 12, 2025 | 2.75% | -0.25% |
| January 29, 2025 | 3.00% | -0.25% |
| December 11, 2024 | 3.25% | -0.50% |
| October 23, 2024 | 3.75% | -0.50% |
| September 4, 2024 | 4.25% | -0.25% |
| July 24, 2024 | 4.50% | -0.25% |
| June 5, 2024 | 4.75% | -0.25% |
| April 10, 2024 | 5.00% | 0.00% |
| March 6, 2024 | 5.00% | 0.00% |
| January 24, 2024 | 5.00% | 0.00% |
| December 6, 2023 | 5.00% | 0.00% |
Changes to the interest rate are scheduled to change or stay the same on eight specific dates for the 2025 fiscal year. These dates are as follows:
- January 29th
- March 12th
- April 16th
- June 4th
- July 30th
- September 17th
- October 29th
- December 10th