Bank of Canada raises its policy rate to 2.50%
The October 28 increase addresses the risk of energy costs spreading to other prices.
Carried forward November 3, 2026. October 28 decision retained; the next decision is scheduled for December 9.
The Bank of Canada announced a 0.25 percentage point increase in its policy rate to 2.50% on October 28. It aims to limit the spread of energy costs to other prices. [1]
An effect on credit
Reuters notes that this is the first increase since July 2023. The agency reports that it could raise lending and mortgage costs while slowing growth. [2]
A contested trade-off
Economists opposed to an increase argue that core inflation remains near 2% and worry about weakening the recovery, Reuters reports. Their concern highlights the trade-off between controlling prices and supporting activity. [2]
The next step remains open
The Bank has not ruled out another increase but plans to proceed cautiously amid uncertainty. Its next decision is scheduled for December 9. [1]
Perspectives compared
Sources and documents
- [1] Bank of Canada — rate decision ↗October 28, 2026
- [2] Reuters — decision and reactions ↗October 28, 2026; updated 11:35 a.m. Eastern