10/28/2026
Bank of Canada interest rate hike announcement 🚨
The Bank of Canada just raised its key interest rate by 25 basis points to 2.50%. This marks the first rate increase since July 2023.
Here is what you need to know:
📈 The Numbers
• Policy Rate: Moved up to 2.50%
• Bank Rate: Now at 2.75%
• Inflation: Rose to 3.1% in September
⚡ Why the Hike?
• Rising energy and oil prices driven by Middle East conflicts.
• Preemptive action by Governor Tiff Macklem to stop energy costs from spiking broader consumer prices.
• Slowing economic growth expected in Q4 due to new U.S. tariffs.
🏠 How It Impacts You
• Variable-rate mortgage holders and lines of credit will see immediate cost increases.
• On a $500,000 mortgage, this adds roughly $70 to your monthly payment.
The next rate decision is scheduled for December 9, 2026.