Bank of Canada raises policy rate by 25 basis points to 2.5% in first increase in three years The Bank of Canada on October 28, 2026 raised its overnight rate target by 25 basis points to 2.5%, the first increase since July 2023. The bank interest is now 2.75% and the deposit interest is 2.45%. The move is intended to reduce the risk that persistently high energy prices will spread to the prices of other goods and services. The Governing Council said interest rates may have to rise further, but it would proceed cautiously given the uncertainty. - Link.

Bank of Canada raises policy rate by 25 basis points to 2.5% in first increase in three years The Bank of Canada on October 28, 2026 raised its overnight rate target by 25 basis points to 2.5%, the first increase since July 2023. The bank interest is now 2.75% and the deposit interest is 2.45%. The move is intended to reduce the risk that persistently high energy prices will spread to the prices of other goods and services. The Governing Council said interest rates may have to rise further, but it would proceed cautiously given the uncertainty. - Link.