Bank of Canada Policy Interest Rate Schedule

Whether you’re a homeowner, a hopeful buyer, or simply someone watching the market, understanding the Bank of Canada’s interest rate decisions is crucial. These announcements affect everything from mortgage payments to the general affordability of housing in Canada. Here’s a complete breakdown of what to expect, the upcoming 2025 schedule, and how these rates shape the economy.

CURRENT POLICY INTEREST RATE: 2.75% (Updated July, 2025)

What Does a Bank of Canada Rate Announcement Mean?
The Bank of Canada (BoC) sets the target for the overnight lending rate, also known as the policy interest rate. This rate influences the prime rate used by commercial banks to determine interest on mortgages, lines of credit, and other loans. When the BoC changes its rate, it ripples across the financial system.

So when you hear “BoC Announcement,” it’s not just news for economists—it directly affects your borrowing costs, especially if you have a variable-rate mortgage.

Bank of Canada’s Interest Rate Schedule for 2025 The BoC typically releases rate announcements eight times a year. Here are the scheduled dates for 2025:

Latest Update (as of April 16, 2025): At its latest meeting, the Bank of Canada held the policy interest rate steady at 2.75%. This marked a pause in the easing cycle as trade uncertainty and inflation concerns created a foggy economic outlook.

The BoC noted that while inflation has eased from its peak, uncertainty remains due to external factors like global tariffs and economic slowdowns. So, for now, no further rate cuts.

Looking Ahead to June 4, 2025: Some analysts are predicting a 25 basis point cut if inflation remains within the BoC’s 1% to 3% target range. However, that decision will hinge on data like GDP growth, unemployment, and core inflation.

📊 June 2025 BoC Rate Decision Scenarios

The market is watching June’s Bank of Canada announcement closely. Here’s a visual forecast of what could happen — and how each path might affect mortgage rates:

Interactive Prediction Graph: June 2025 Rate Cut vs Hold vs Hike

• 📉 Scenario 1: Rate Cut (↓) – Fixed and variable rates could drop 0.10% to 0.25%
• ⏸️ Scenario 2: Rate Hold – Variable rates stay steady; fixed may adjust based on bond yields
• 📈 Scenario 3: Rate Hike (↑) – Variable rates go up immediately; fixed may rise slightly

*Forecasts based on market trends and economist polling. Actual impact depends on BoC tone and inflation data.

Will There Be Rate Increases in 2025? Probably not. Most experts expect more rate holds or small cuts in the coming months. Rising unemployment and stagnant consumer spending make rate hikes less likely—but as always, forecasts depend on how quickly inflation cools and how resilient the Canadian economy proves to be.

Historical Bank of Canada Rate Changes Understanding past movements helps predict future trends. Here are recent BoC rate changes:

Monetary Policy Reports: Where to Find Them Each quarter, the BoC also releases a Monetary Policy Report (MPR) alongside some of its announcements. These detailed documents offer deep insights into why the BoC made its decision, including:

• Inflation trends
• Wage growth
• International pressures
• Housing and employment data

You can find the latest and historical MPRs directly on the Bank of Canada website.

Final Thoughts: Why It All Matters Whether you’re planning to buy your first home, renew your mortgage, or just want to stay ahead financially, BoC interest rate decisions matter. They affect your borrowing costs, influence the housing market, and guide economic expectations.

Not sure how the Bank of Canada’s rate changes affect your mortgage?
Speak with a licensed expert today and get clarity tailored to your situation.