On October 28, 2026, the Bank of Canada raised its policy rate by 0.25 percentage points, to 2.5%. Here are the facts from its official press release, without interpretation.
The new rates
| Rate | Level |
|---|---|
| Overnight rate target (policy rate) | 2.5% (up 0.25 points) |
| Bank Rate | 2.75% |
| Deposit rate | 2.45% |
Why the Bank acted
The Bank says inflation is higher and more persistent than it projected in its July report, and that growth has picked up this year. It says it acted to lower the risk that high energy prices spread to the prices of other goods and services. It adds that further rate increases may be needed, while saying it will move carefully given the uncertainty.
The figures it cites
- CPI inflation has been around 3% since April and is expected to rise to about 3.5% by year-end. Excluding gasoline, it was 2.2% in September.
- Canadian GDP grew 3.3% in the second quarter, and indicators point to about 2% in the third.
- The unemployment rate has been around 6.5% for several months.
- The Bank forecasts growth of 1% in 2026 and 2% in both 2027 and 2028.
The global economy and the dollar
According to the release, global activity has held up despite higher energy prices, and 2026 global growth was revised slightly up to 3.1%. Global financial conditions have tightened since July, with higher bond yields. The Canadian dollar is around 71 cents US, the same as the July assumption. The Bank expects growth to slow in the fourth quarter because of new U.S. tariffs, then pick up in 2027.
Three rates, three meanings
The policy rate is the overnight rate target. The Bank Rate, at 2.75%, is the highest of the three, and the deposit rate, at 2.45%, the lowest.
The next dates
The next policy rate announcement is December 9, 2026, and the next Monetary Policy Report is due January 27, 2027.
What about your mortgage?
The policy rate is a Bank of Canada decision. Each lender then sets its own rates, and the effect on your loan depends on your contract, its type and its renewal date. For a precise answer, check with your lender or a mortgage broker. For local figures, see the Q3 2026 Gatineau market report and the welcome tax guide.
General information only, not financial or legal advice. Thomas Lymburner is a residential real estate broker with RE/MAX Direct (OACIQ licence J6215). To talk about your plans, contact him.
Sources
How much a realtor costs in Quebec · How to choose a realtor
Frequently asked questions
2.5% since October 28, 2026, up 0.25 percentage points, according to the Bank of Canada.
December 9, 2026, according to the Bank of Canada. The next Monetary Policy Report is due January 27, 2027.
It says inflation is higher and more persistent than projected in July, and it wants to lower the risk that high energy prices spread to other prices.
It depends on your contract. Each lender sets its own rates, so check with yours or with a mortgage broker.
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