Bank of Canada raises its policy rate by 25 basis points

International Central bank Economy & Banking International Relations

Bank of Canada raises its policy rate by 25 basis points

28 October 2026

On 28 October 2026 the Bank of Canada moved its overnight rate target up by 25 basis points, taking it to 2.5 per cent. The Bank Rate goes with it to 2.75 per cent and the deposit rate to 2.45 per cent. Canada's policy interest rate is the overnight rate target, announced on fixed dates set out in advance for the year. The Bank Rate is what the central bank charges when it lends to financial institutions, and it sits a quarter of a percentage point above the policy rate. On balances held with it, the Bank pays the deposit rate. Earlier announcements in 2026 had left the policy rate at 2.25 per cent, so this is a change of direction.

Policy rate: 2.5% Increase: 25 basis points Bank Rate: 2.75% Deposit rate: 2.45%

Why it matters for exams: The Bank of Canada's policy rate, called the target for the overnight rate, and the Bank Rate set above it are the kind of central-bank facts asked in banking and economy papers.

UPSCBank

28 October 2026 Source: Bank of Canada

In plain words

Bank Rate Bank of Canada lending rate — The rate at which the Bank of Canada lends to financial institutions, set above its policy rate.