Bank of Canada policy rate (target for the overnight rate), Canada
The Bank of Canada policy rate in Canada was 2.25% in , unchanged from and down 0.25 pp from a year earlier. The next reading is for October 2026. Source: Bank of Canada, Valet V39079; history from .
Key takeaways
- The Bank of Canada policy rate at 2.25% in beats 76% of readings since (Bank of Canada).
- Against a ten-year average of 2.03%, the Bank of Canada policy rate is above that norm by 0.22 pp (Bank of Canada).
- On the Bank of Canada policy rate, Canada ranks 4th highest of 4 countries (national publishers).
What this indicator is and why it matters
The Bank of Canada's policy rate is its target for the overnight rate, the rate at which major financial institutions lend one-day funds to each other. The Bank announces it on eight fixed dates a year and keeps the market rate close to the target by paying interest on deposits at the bottom of a narrow operating band and lending at the top. The series here is the target in force on the last business day of each month, from the Bank's Valet data service.
Changes in the target pass quickly to the prime rates of Canadian banks, and from there to variable-rate mortgages, lines of credit and business loans. Because many Canadian mortgages are renewed every few years, the policy rate also reaches fixed-rate borrowers, with a delay, at renewal. The Bank sets the rate to keep inflation at the 2% midpoint of its 1% to 3% target range.
Note the month-end basis. Unlike the US, Australian and UK policy rate series on this site, which average the daily rate over the month, this series shows the target at the end of the month, so a change announced mid-month appears in full in that month. The history here starts in April 2009.
Where it sits in history
The Bank of Canada policy rate is at its lowest since , when it stood at 1.50%. Within ten years, the Bank of Canada policy rate beats 58% of readings; earlier years held the Bank of Canada policy rate lower.
| Window | Latest is higher than | Average | Highest | Lowest |
|---|---|---|---|---|
| Since April 2009 | 76% of readings | 1.50% | 5.00% | 0.25% |
| Last ten years | 58% of readings | 2.03% | 5.00% | 0.25% |
| Last five years | 17% of readings | 3.09% | 5.00% | 0.25% |
- Bank of Canada policy rate (target for the overnight rate) 2.2%
Recent readings
Last five years
- Bank of Canada policy rate (target for the overnight rate) 2.2%
Latest readings
| Period | Value | Change from previous |
|---|---|---|
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | 0.00 pp | |
| 2.25% | -0.25 pp | |
| 2.50% | -0.25 pp |
Annual averages
By calendar-year average, the Bank of Canada policy rate peaked in (4.77%) and bottomed in (0.25%). 2026 to date: 2.25%, after 2.65% in 2025.
| Year | Average | Low | High | Readings |
|---|---|---|---|---|
| 2026 (part year) | 2.25% | 2.25% | 2.25% | 9 |
| 2025 | 2.65% | 2.25% | 3.00% | 12 |
| 2024 | 4.48% | 3.25% | 5.00% | 12 |
| 2023 | 4.77% | 4.50% | 5.00% | 12 |
| 2022 | 2.04% | 0.25% | 4.25% | 12 |
| 2021 | 0.25% | 0.25% | 0.25% | 12 |
| 2020 | 0.50% | 0.25% | 1.75% | 12 |
| 2019 | 1.75% | 1.75% | 1.75% | 12 |
| 2018 | 1.44% | 1.25% | 1.75% | 12 |
| 2017 | 0.71% | 0.50% | 1.00% | 12 |
| 2016 | 0.50% | 0.50% | 0.50% | 12 |
| 2015 | 0.62% | 0.50% | 0.75% | 12 |
| 2014 | 1.00% | 1.00% | 1.00% | 12 |
| 2013 | 1.00% | 1.00% | 1.00% | 12 |
| 2012 | 1.00% | 1.00% | 1.00% | 12 |
| 2011 | 1.00% | 1.00% | 1.00% | 12 |
| 2010 | 0.60% | 0.25% | 1.00% | 12 |
| 2009 (part year) | 0.25% | 0.25% | 0.25% | 9 |
Same measure in other countries
The Bank of Canada policy rate in Canada is above 0 of the other 3 comparable readings. Four countries compared.
| Country | Series | Latest | Period | Change on a year earlier |
|---|---|---|---|---|
| Canada | Bank of Canada policy rate (target for the overnight rate) | 2.25% | -0.25 pp | |
| United States | Effective federal funds rate | 3.75% | September 2026 | -0.47 pp |
| Australia | RBA cash rate target | 4.36% | September 2026 | +0.76 pp |
| United Kingdom | Bank Rate | 3.75% | September 2026 | -0.25 pp |
How is it measured?
Target for the overnight rate on the last business day of the month. Formula: last daily value of V39079 in the month.
Bank of Canada publishes the Bank of Canada policy rate monthly in Valet V39079, in percent. Code: V39079. Monthly basis: each month shows the value at the end of the month, not an average. Method for the Bank of Canada policy rate.
Questions
How high is the Bank of Canada policy rate in Canada now?
2.25% in (Bank of Canada), down 0.25 pp on a year earlier.
Is the Bank of Canada policy rate high by historical standards?
The Bank of Canada policy rate beats 76% of readings since ; its peak was 5.00% (), its low 0.25% ().
When is the Bank of Canada policy rate updated?
Monthly, in Valet V39079. Next reading: October 2026.
Where can I check the Bank of Canada policy rate at the source?
Bank of Canada data, code V39079.