Bank of Canada Policy Interest Rate Schedule 2026: What You Need to Know

Understanding the Bank of Canada’s policy interest rate schedule for 2026 is essential for economists, investors, homeowners, and anyone planning personal or business finances in Canada. The policy rate shapes borrowing costs, mortgage rates, savings yields, and overall economic direction. This year’s schedule and likely movements reflect ongoing efforts by the central bank to balance inflation with economic growth. 

What Is the Bank of Canada Policy Interest Rate?

The policy interest rate—often referred to as the target overnight rate—is the key tool the Bank of Canada (BoC) uses to conduct monetary policy. It represents the interest rate at which major financial institutions borrow and lend one‑day (overnight) funds among themselves. This rate influences many lending rates, including those for mortgages, credit cards, and business loans, making it a fundamental factor in the Canadian economy.

When the BoC raises the policy rate, borrowing becomes more expensive. When it lowers the rate, borrowing typically becomes cheaper. The objective is to control inflation, support economic growth, and maintain financial stability.

2025–2026 in Context: Current Policy Rate

As of December 2025, the Bank of Canada’s target overnight rate was held steady at 2.25% following a rate cut from 2.50% in the prior meeting.

This rate level reflects the central bank’s view that inflation pressures have eased toward its 2% target while the broader economy shows signs of slowing. As a result, the BoC has opted for a cautious stance, holding the rate where it is to monitor incoming economic data before making further adjustments.

The 2026 Interest Rate Announcement Schedule

The Bank of Canada publishes a fixed schedule each year for policy interest rate announcements and Monetary Policy Reports. These dates are important because markets, businesses, and consumers often adjust expectations or make decisions based on what the Bank signals on those days.

Here is the official 2026 Bank of Canada policy interest rate schedule:

All announcements are typically released at 09:45 Eastern Time (ET), and for four dates in the year—January, April, July, and October—the Bank also releases a Monetary Policy Report (MPR). These reports provide detailed insight into the Bank’s reasoning and future expectations.

How the Schedule Impacts Canadians

The Bank of Canada schedule matters for several reasons:

1. Variable‑Rate Borrowers

If you have a variable‑rate mortgage or loan, interest costs can fluctuate based on the Bank’s policy rate. On scheduled announcement days, banks may adjust prime rates tied to the BoC, affecting monthly payments.

2. Mortgage Renewals and Purchases

Even fixed‑rate mortgage pricing moves in anticipation of rate changes. If markets expect future rate cuts, long‑term mortgage rates may trend lower; if hikes are expected, fixed rates may move higher.

3. Savings and Investments

Higher policy rates generally mean better interest earnings on savings accounts and term deposits. Investors in bonds, ETFs, and other interest‑sensitive assets watch BoC decisions closely to manage portfolio risk.

4. Business Decisions

Businesses planning expansions or financing new projects make budgeting decisions around expected borrowing costs. The BoC schedule gives a roadmap for when key decisions will be announced.

2026 Interest Rate Outlook: What to Expect

While the schedule lists the decision dates, the more important question for many readers is: will rates move in 2026?

As of early 2026, economists and market watchers generally project a relatively stable policy rate throughout the year, though there is no certainty. Several major Canadian banks and analysts believe the BoC is likely to hold the policy rate at 2.25% for much of 2026, barring unexpected inflation shocks or sharp economic shifts.

However, there is some diversity in forecasts:

Scotiabank Forecasts

Some forecasts suggest that while the rate may remain at 2.25% for most of the year, there could be an increase toward 2.50% or even 2.75% by year‑end if inflation proves persistent or the economy strengthens beyond expectations. These projections reflect caution that the central bank may need to tighten policy again if inflation spikes unexpectedly.

Consensus View

Most forecasts, including those from major Canadian banks like RBC, CIBC, BMO, and TD, signal a neutral stance with rates broadly unchanged in 2026. The rationale is that inflation has moved closer to target and economic growth remains modest, so there is little need for immediate policy shifts unless conditions change significantly.

Market Expectations

Financial markets often price in expectations ahead of each announcement. Leading into 2026, futures markets reflected a high likelihood of stable rates, with markets assigning relatively low probability to sharp moves higher or lower. Such sentiment indicates that investors are preparing for steady monetary policy throughout 2026.

Key Economic Indicators to Watch in 2026

The Bank of Canada bases its interest rate decisions on a range of economic indicators. While the schedule provides the timing, the actual decisions depend on evolving data:

1. Inflation Trends

Inflation remains the BoC’s primary focus. The Bank measures inflation both through headline CPI and underlying measures (like core inflation). If inflation stays around the 2% target, pressure to change rates may diminish.

2. Employment and Labour Market

The labour market is a key indicator of economic health. Strong employment figures could influence future monetary policy, while weakening job markets could prompt caution.

3. Economic Growth

Gross Domestic Product (GDP) trends guide the Bank’s willingness to tighten or ease policy. Slower‑than‑expected growth could lead to a neutral or even accommodative stance.

4. Global Developments

External shocks, trade disruptions, or shifts in global financial conditions can influence Canadian monetary policy. In 2025, trade policy tensions and slower global growth were cited as factors affecting rate decisions. Such external risks will continue to weigh on 2026 policy decisions.

What This Means for You

Whether you are a homeowner, investor, business owner, or student planning future finances, understanding the Bank of Canada’s policy rate schedule and outlook for 2026 is essential.

Here is how different groups may be impacted:

Homeowners & Mortgage Borrowers

• Variable‑rate borrowers should monitor rate decisions and expect mortgage costs to remain relatively stable if the BoC holds rates.
• Fixed‑rate borrowers may see price movements in advance of announcements that affect long‑term mortgage deals. Planning around scheduled meetings allows borrowers to time mortgage renewals or mortgage refinancing with better clarity.

Investors

Investors in bonds, REITs, and interest‑sensitive securities should track the Bank’s forecasts and speak with advisors about how a stable rate environment in 2026 could impact portfolios.

Businesses

Corporate financial planning depends on predictable borrowing costs. The Bank’s decision calendar gives businesses a framework for budgeting financing costs and investment planning.

Consumers

Consumers making decisions about loans, credit cards, and savings can use the Bank’s schedule and outlook to make informed financial choices—especially in planning big purchases or shifting savings strategies.

Final Thoughts

The Bank of Canada Policy Interest Rate Schedule for 2026 provides a clear framework for when monetary policy decisions will be announced throughout the year. While the exact direction of rate movements will depend on economic data, the current outlook suggests relative stability with a neutral policy stance.

For readers, aligning financial planning with key announcement dates, understanding how rates influence borrowing and saving, and following evolving economic indicators will be essential in navigating the Canadian economy in 2026.

For personalized guidance tailored to your financial situation, contact our mortgage experts—they can help you understand how changes in interest rates may affect your mortgage qualification. Contact us for more information