Canada: overnight rate target 2.25%
Bank of Canada · Overnight rate target
The Bank of Canada has held its overnight rate target at 2.25% for 11 months. Its last move was a 25 bps cut, effective Oct 30, 2025.
- Effective
- Oct 30, 202511 months ago
- Cycle
- On holdFor 11 months
- Moves in 12 months
- 11 cut
- Next decision
- Not on our calendar yetBeing added
How high it is
Higher than on 76% of days since 2009
Days at each level since 2009. Today’s level is in colour.
Where in the cycle
On hold for 11 months after easing
Two earlier easing cycles ran a median −100 bps over 3 months.
Against the Fed
−175 bps below the Fed, deeper discount than on 95% of days since 2009
The same gap as a year ago.
Among 7 central banks
The 7th highest policy rate of the seven
The lowest of the set.
What it means for a loan
On a $500,000 loan over 25 years, this cut takes off about $70 a month
Defaults model a $500,000 variable-rate mortgage. Change any field.
- Monthly payment
- $2,765 → $2,695
- Or keep the monthly payment
- 13 fewer months
- Interest over the loan
- −$21,084
- Rate
- 4.45% → 4.20%
How it reaches loans in Canada
Variable mortgages follow prime within days; fixed terms wait for renewal
- Priced off
- Lender's prime rate
- Resets
- Within days of a decision
- Priced off
- Fixed for the term, often five years
- Resets
- At renewal
Where this cycle stands
The Bank of Canada last cut rates 11 months ago. That easing cycle moved −275 bps in 17 months, against a median of −100 bps for earlier ones.
Every cycle since 2009
Three tightening and three easing cycles. Hover one to trace it.
Against the Fed
Canada’s overnight rate target sits 175 bps below the Fed’s upper bound: a deeper discount than on 95% of days since 2009.
The record since 2009
32 moves since April 2009, from a high of 5.00% in Jul 2023 to a low of 0.25% in Apr 2009.
Every move
32 moves since Apr 2009. Votes and statements for the BoC are being added.
Among 7 central banks
Canada’s 2.25% is the 7th highest of the seven, below Euro area (2.50%).
