Bank of Canada Policy Interest Rate Schedule: What Every Homebuyer Should Know in 2025

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Why the Bank of Canada’s Interest Rate Announcements Matter

If you’re a homeowner, aspiring buyer, or just interested in the Canadian real estate market, chances are you’ve heard the buzz around Bank of Canada (BoC) interest rate announcements. These announcements are far more than media headlines — they shape the cost of borrowing, influence your mortgage payments, and affect your buying power.

As Canada’s central bank, the BoC sets the policy interest rate (also known as the overnight rate), which is the foundation for all other interest rates — including the prime rate that lenders use to determine mortgage rates.

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What to Expect from a Bank of Canada Announcement

📌 Mini Verdict: When the BoC adjusts its rate, every lender across the country adjusts with it. It’s the single biggest factor influencing variable mortgage rates.

When people refer to a “Bank of Canada rate hike” or “BoC announcement,” they’re usually talking about the overnight rate. This number ripples through the economy — raising or lowering everything from your mortgage rate to your line of credit.

A rate increase makes borrowing more expensive (to slow inflation). A cut makes it cheaper (to stimulate spending). And when the BoC holds the rate steady, it often signals economic uncertainty.

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2025 Bank of Canada Announcement Dates

Here’s when you can expect the Bank of Canada to issue new interest rate guidance this year:

• January 29
• March 12
• April 16
• June 4
• July 30
• September 17
• October 29
• December 10

These dates are locked in advance and followed closely by economists, mortgage lenders, and homebuyers alike.

Where Rates Stand Now: April 2025 Update

As of the latest BoC announcement on April 16, 2025, the policy interest rate remains at 2.75%. The central bank has paused further cuts for now due to uncertainty caused by international tariff threats and inflationary risks.

The BoC acknowledged that while monetary policy can’t fix trade wars, it remains committed to price stability and economic growth — meaning interest rate decisions will continue to evolve in response to inflation trends and global economic pressures.

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Looking Ahead to June 2025: Will There Be a Cut?

Economists are split on the June 4th decision. While inflation is slowly inching closer to the BoC’s 1%–3% target range, there’s still a possibility the bank could cut rates by 0.25% — but only if data supports further easing.

Many borrowers — especially those with variable-rate mortgages — are watching closely to see whether their monthly payments might drop. For those looking to get into the housing market, even a small cut can improve affordability significantly.

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BoC Rate Change History (2023–2025)

Here’s a snapshot of key BoC moves over the past few years:

Date	Rate (%)	Change (%)
April 16, 2025	2.75	No Change
March 12, 2025	2.75	-0.25
Jan 29, 2025	3.00	-0.25
Dec 11, 2024	3.25	-0.50
Oct 23, 2024	3.75	-0.50
July 24, 2024	4.50	-0.25
April 10, 2024	5.00	No Change
Jan 24, 2024	5.00	No Change
Oct 25, 2023	5.00	No Change
July 12, 2023	5.00	+0.25
Jan 25, 2023	4.50	+0.25
Dec 7, 2022	4.25	+0.50

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Where to Find Official BoC Documents

Curious about the reasoning behind these numbers? Every rate announcement is accompanied by a Monetary Policy Report — a detailed document outlining the state of the Canadian and global economy, along with BoC’s forecasts.

You can find:

• All past rate changes
• BoC’s 10-year interest rate history
• Economic projections for GDP, inflation, and employment
• Current assessment of housing markets and consumer debt levels

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Final Thoughts: Why This All Matters to You

BoC announcements aren’t just for economists. They impact your mortgage payments, borrowing power, renewal options, and even your home-buying strategy.

Whether you’re locking in a fixed rate or riding out a variable, staying informed about rate trends helps you plan your finances better. If you’re unsure how to position yourself amid changing rates, speak with a mortgage expert who can walk you through your options.

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