Bank of Canada Policy Interest Rate Schedule (Updated 2025)

The Bank of Canada’s policy interest rate is the benchmark that guides borrowing costs across the country — from mortgage rates to business loans. Whether you’re a homeowner, investor, or just trying to keep up with economic shifts, staying updated on the BoC’s scheduled rate announcements is key. In this 2025 guide, we’ve laid out the full interest rate schedule, upcoming decision dates, and what each meeting could mean for your financial plans.

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Current Policy Interest Rate: 2.75% (as of May 23, 2025)

Whether you’re a homeowner, prospective buyer, or investor in Canadian real estate, the Bank of Canada’s policy interest rate matters more than you might think. Every time the BoC makes an announcement, it has a ripple effect across mortgages, credit, and even your household expenses.

This guide breaks down everything you need to know about the BoC’s rate decisions, what they mean for Canadians, and what the rest of 2025 might look like.

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Key Takeaways

• The Bank of Canada sets the target overnight rate, which influences all other lending rates, including mortgage and prime rates.
• As of May 2025, the rate stands at 2.75%, following a series of cuts since mid-2024.
• The BoC makes scheduled announcements eight times per year, outlining any changes or decisions to hold the rate.

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What Happens During a Bank of Canada Rate Announcement?

Every few months, the BoC issues a press release announcing whether the policy interest rate (a.k.a. the overnight rate) will go up, down, or stay the same. This decision is the cornerstone of Canadian monetary policy.

The overnight rate is the rate at which major financial institutions borrow and lend one-day (“overnight”) funds among themselves. When this rate changes, your mortgage interest rate, loan rate, and even savings account returns may shift in response.

Most notably, the prime rate — used to calculate variable mortgage and line of credit rates — often moves in lockstep with the overnight rate.

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Bank of Canada’s Interest Rate Announcement Schedule (2025)

Below are the BoC’s official 2025 policy rate announcement dates:

And here’s a look back at the 2024 announcement schedule:

• January 24 — 5.00% (unchanged)
• March 6 — 5.00% (unchanged)
• April 10 — 5.00% (unchanged)
• June 5 — 4.75% (-0.25%)
• July 24 — 4.50% (-0.25%)
• September 4 — 4.25% (-0.25%)
• October 23 — 3.75% (-0.50%)
• December 11 — 3.25% (-0.50%)

The BoC began cutting rates in mid-2024, reacting to softening inflation and economic uncertainty.

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Where Rates Stand in Spring 2025

As of the April 16, 2025 announcement, the overnight rate remained unchanged at 2.75%. The BoC cited economic uncertainty, inflation within the 1–3% target band, and concerns over trade instability as key reasons for holding.

Analysts had forecast a potential 25-basis-point cut, but the BoC opted to pause its easing cycle. The next decision — scheduled for June 4 — could mark a turning point if inflation and GDP growth dip further.

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Should We Expect Rate Increases This Year?

Unlikely. While nothing is ever certain in economics, most forecasts predict further cuts rather than hikes. Inflation is trending downward, employment is stabilizing, and consumer spending has cooled.

Of course, unexpected global events or a sharp rebound in inflation could change this — but for now, 2025 seems to be shaping up as a rate-cutting year.

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Recent Bank of Canada Rate History

Date	Target (%)	Change (%)
April 16, 2025	2.75	No Change
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	No Change
March 6, 2024	5.00	No Change
January 24, 2024	5.00	No Change

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Where to Find BoC Monetary Policy Reports

Each quarter, the Bank of Canada also publishes a Monetary Policy Report. These reports offer deep insights into:

• Inflation projections
• GDP trends
• Housing sector outlook
• Global financial stability risks

If you want to understand the “why” behind every rate decision, these reports are a goldmine.

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Final Thoughts: What This Means for You

The BoC’s interest rate moves affect your mortgage, your borrowing power, and your budget. Whether you’re planning to buy this year, renew your mortgage, or just want to stay informed — tracking these announcements can help you stay a step ahead.

Tip: Variable-rate mortgage holders should especially pay attention. Even small changes to the BoC’s rate can increase or decrease your payments significantly over time.

For a full breakdown of how rate changes impact your options, connect with a Mortgage.Expert advisor who can help personalize a strategy that works for you.