CURRENT BoC OVERNIGHT RATE: 2.75% (Updated July 30, 2025)
The Bank of Canada’s policy interest rate, also called the target overnight rate, is the foundation for all interest rates throughout the Canadian economy. This key rate is the interest rate at which major financial institutions borrow and lend one-day funds among themselves. When the Bank of Canada adjusts this rate, it has a ripple effect throughout the economy. Understanding the Bank of Canada interest rate schedule enables homeowners and investors to make informed financial decisions.
Bank of Canada interest rate announcement schedule 2025
The Bank of Canada follows a predetermined schedule of eight announcements annually at 09:45 ET (13:45 UTC), with three remaining in 2025. It occurs every 6 – 7 weeks. Here are the complete Bank of Canada interest rate dates for 2025:
| Date | Status | Rate Change |
|---|---|---|
| Wednesday, January 29, 2025 | Completed | 3.00% (-0.25%) |
| Wednesday, March 12, 2025 | Completed | 2.75% (-0.25%) |
| Wednesday, April 16, 2025 | Completed | 2.75% (unchanged) |
| Wednesday, June 4, 2025 | Completed | 2.75% (unchanged) |
| Wednesday, July 30, 2025 | Completed | 2.75% (unchanged) |
| Wednesday, September 17, 2025 | Upcoming | – |
| Wednesday, October 23, 2025 | Upcoming | – |
| Wednesday, December 11, 2025 | Upcoming | – |
BoC historical overnight rate changes from 2021 to 2025
The Bank of Canada’s interest rate has fluctuated significantly over the past three years. The Bank of Canada has been on a rate-cutting cycle since mid-2024, following aggressive rate hikes to combat inflation. The central bank began lowering its policy rate in June 2024 after holding it steady at 5.00% for nearly a year. Since then, the bank has implemented seven consecutive rate cuts, bringing the policy rate down from 5.00% to the current 2.75%.
| Effective Date | Overnight Rate | Change |
|---|---|---|
| July 30, 2025 | 2.75 | – |
| June 04, 2025 | 2.75% | – |
| April 16, 2025 | 2.75% | – |
| 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 04, 2024 | 4.25% | -0.25% |
| July 24, 2024 | 4.50% | -0.25% |
| June 5, 2024 | 4.75% | -0.25% |
| April 10, 2024 | 5.00% | – |
| March 06, 2024 | 5.00% | – |
| January 24, 2024 | 5.00% | – |
| December 06, 2023 | 5.00% | – |
| October 25, 2023 | 5.00% | – |
| September 06, 2023 | 5.00% | – |
| July 12, 2023 | 5.00% | +0.25% |
| June 07, 2023 | 4.75% | +0.25% |
| April 12, 2023 | 4.50% | – |
| March 8, 2023 | 4.50% | – |
| January 25, 2023 | 4.50% | +0.25% |
| December 07, 2022 | 4.25% | +0.5% |
| October 26, 2022 | 3.75% | +0.5% |
| September 07, 2022 | 3.25% | +0.75% |
Bank of Canada’s Monetary Policy Report
The Monetary Policy Report (MPR) is a quarterly publication released by the Bank of Canada that provides a detailed assessment of current economic conditions and the outlook for the Canadian economy. It provides valuable insights into the factors that influence the Bank’s rate decisions, helping markets, businesses, and consumers understand the Bank’s perspective on the economy.
The Monetary Policy Report typically includes:
- Economic outlook: Detailed projections for GDP growth, inflation, and other key economic indicators for the next 2-3 years.
- Inflation assessment: Analysis of current inflation trends, underlying factors, and expectations for future inflation.
- Global economic context: Evaluation of international economic conditions and how they might affect Canada.
- Risks to the forecast: Identification of potential upside and downside risks that could alter the Bank’s economic projections.
- Monetary policy considerations: Explain how the Bank’s analysis translates into its interest rate decisions.
The MPR is published in January, April, July, and October, coinciding with four of the eight scheduled interest rate announcements. The most recent MPR was published in April 2025, with the next one scheduled for July 2025, coinciding with the July 30 Bank of Canada interest rate announcement. These reports are available on the Bank of Canada’s website and provide essential context for understanding the Bank’s rate decisions.
About the rate hold decision on July 30
The Bank of Canada decided to keep its policy interest rate steady at 2.75% on July 30, 2025. This is the third time in a row the Bank has chosen to wait and see, a clear sign of caution as it tries to balance a surprisingly resilient economy against trade jitters and inflation that just won’t quit.
There are two big reasons: stubborn inflation and a surprisingly tough job market. While the main inflation number was 1.9%, the core numbers are hovering around 3%, which is the upper end of the Bank’s comfort zone. When you factor in tax changes, underlying inflation looks closer to 2.5%, telling the Bank that price pressures are stickier than they seem (source).
At the same time, the job market isn’t falling apart. Despite headaches in industries hit by trade disputes, the overall unemployment rate has only edged up to 6.9%. This slow cooling gives the Bank the space it needs to wait without worrying about triggering a major downturn.
How does the policy rate change affect your mortgage?
The policy rate has significant implications for variable-rate mortgages. These mortgage types are directly tied to the lender’s prime rate, which moves in tandem with the Bank of Canada’s policy rate changes. For example, when the Bank of Canada cuts its rate by 0.25%, variable-rate mortgage holders typically see their interest costs decrease by the same amount, either through lower monthly payments (for adjustable-rate mortgages) or through more of their payment being applied to principal rather than interest (for variable-rate mortgages with fixed payments).
While not directly tied to the policy rate, fixed-rate mortgages are indirectly affected through bond markets. Fixed mortgage rates are primarily influenced by Government of Canada bond yields, which factor in expected movements in the key policy rate along with other market considerations.
So, what’s the verdict for your mortgage with the July 30 decision?
For variable-rate mortgage holders, you can exhale for now. Your rate is tied to the prime rate, so with the Bank holding steady, your payments won’t change.
For fixed-rate mortgage holders, it’s a different story. If you’re shopping for a new mortgage or your renewal is coming up, you’re facing a tougher market. Government of Canada bond yields, which guide fixed-rate pricing, are over 3%, pushing five-year fixed rates into the 5.5% to 6.2% range. That’s a huge jump from the rates available just 18 months ago.
This gap between variable and fixed rates makes for a tricky choice. Variable rates are cheaper right now, but they come with the risk of future hikes. The Bank’s cautious tone suggests any future moves will be slow, which might make a variable rate tempting for those who can handle some uncertainty.
Facing the “renewal cliff”
About 60% of Canadian mortgages are up for renewal in 2025 and 2026. Many homeowners who locked in a low five-year fixed rate around 2.5% in 2020 could be looking at renewal rates that are three percentage points higher. On a typical mortgage, that could mean paying an extra $800 or more each month.
Being proactive is key. You can often secure a rate hold from a lender up to 120 days before your renewal date, which lets you lock in today’s rate in case it goes up. If you’re feeling the pinch, some lenders offer options like extending your amortization (the total time to pay off the loan) to lower your monthly payments, though this means paying more interest over the long run.
Summary: Why you need to understand the BoC rate changes
The Bank of Canada’s interest rate announcement has direct effects on the Canadian housing market and affordability. Thus, by staying informed about the rate schedule, you can better navigate your financial journey and find the best mortgage rates.
The Bank of Canada will continue to adjust its monetary policy in response to evolving economic conditions. The next rate announcement on September 17 will provide further insights into the Bank’s assessment of the economy and its rate path for the remainder of the year.
Contact our expert mortgage advisors at BestMO Mortgage for personalized advice on how Bank of Canada rate changes affect your specific mortgage situation.
FAQs about the Bank of Canada interest rate schedule
How often does the Bank of Canada announce interest rate decisions?
The Bank of Canada announces interest rate decisions eight times yearly on predetermined dates. These announcements occur approximately every six weeks and follow a schedule published in advance on the Bank of Canada's website.
What time are Bank of Canada rate announcements typically made?
Bank of Canada rate announcements are typically made at 09:45 AM Eastern Time on the scheduled announcement dates. They are immediately followed by a press release on the Bank of Canada's website explaining the decision.
Where can I find the next Bank of Canada rate announcement date?
The next Bank of Canada rate announcement date is on the Bank of Canada's official website under the "Key Interest Rate" section. Financial news websites, banks, and mortgage broker sites like BestMO also typically publish the upcoming announcement dates.
Do all Canadian lenders follow the Bank of Canada rate changes?
While most major Canadian lenders adjust their prime rates in response to Bank of Canada rate changes, they are not legally required to do so. Lenders might occasionally not pass on the full rate change or delay implementing changes. However, competitive pressures typically ensure that most lenders maintain their prime rate at similar levels.
