CURRENT BoC OVERNIGHT RATE: 2.75% (Updated March 12, 2025)
The Bank of Canada’s policy interest rate, also called the target overnight rate, is the foundation for all interest rates throughout the Canadian economy. This key rate is the interest rate at which major financial institutions borrow and lend one-day funds among themselves. When the Bank of Canada adjusts this rate, it has a ripple effect throughout the economy.
Understanding the Bank of Canada interest rate schedule enables homeowners and investors to make informed financial decisions. This guide outlines the Bank of Canada interest rate announcements for 2025 and the impact of these decisions on mortgages and the overall Canadian economy.
Bank of Canada Rate Announcement Schedule
The Bank of Canada follows a predetermined schedule of eight announcements annually, with five remaining in 2025.
BoC Rate announcement schedule 2025
Here is the complete Bank of Canada interest rate announcement schedule for 2025:
| Date | Status | Rate Change |
|---|---|---|
| Wednesday, January 29, 2025 | Completed | 3.00% (-0.25%) |
| Wednesday, March 12, 2025 | Completed | 2.75% (-0.25%) |
| Wednesday, April 16, 2025 | Upcoming | – |
| Wednesday, June 4, 2025 | Upcoming | – |
| Wednesday, July 30, 2025 | Upcoming | – |
| Wednesday, September 4, 2025 | Upcoming | – |
| Wednesday, October 23, 2025 | Upcoming | – |
| Wednesday, December 11, 2025 | Upcoming | – |
Source: Bank of Canada publishes its 2025 schedule for policy interest rate announcements
Previous rate decisions
The Bank of Canada has been on a rate-cutting cycle since mid-2024, following aggressive rate hikes to combat inflation. The central bank began lowering its policy rate in June 2024 after holding it steady at 5.00% for nearly a year. Since then, the bank has implemented seven consecutive rate cuts, bringing the policy rate down from 5.00% to the current 2.75%.
- Wednesday, December 11, 2024: Rate cut to 3.25%
- Wednesday, October 23, 2024: Rate cut to 3.75%
- Wednesday, September 4, 2024: Rate cut to 4.25%
- Wednesday, July 24, 2024: Rate cut to 4.50%
- Wednesday, June 5, 2024: Rate cut to 4.75%
- Wednesday, April 10, 2024: Rate stays at 5.00%
- Wednesday, March 6, 2024: Rate stays at 5.00%
- Wednesday, January 24, 2024: Rate stays at 5.00%
Bank of Canada’s Most Recent Rate Decision in March 2025
The Bank of Canada’s most recent rate decision occurred on March 12, 2025, when it cut its policy interest rate by 0.25 points, bringing it down to 2.75% from 3.00%. This decision marked the seventh consecutive rate cut since the Bank began its easing cycle in June 2024.
The primary factor driving this decision was the escalating trade tensions between Canada and the United States. The US administration imposed significant tariffs on Canadian imports of 25% on non-energy imports and 10% on energy imports, citing national security concerns. These tariffs posed a serious threat to Canada’s economic stability, as exports to the US represent approximately 80% of Canada’s GDP.
By lowering the policy rate, the Bank aimed to cushion the Canadian economy from the disruptive impact of these tariffs and support economic activity during this challenging period.
BoC Overnight Rate Changes
The Bank of Canada interest rate has fluctuated significantly over the past three years, reflecting changing economic conditions.
| Effective Date | Overnight Rate | Change |
|---|---|---|
| March 12, 2025 | 2.75% | -0.25% |
| January 28, 2025 | 3.00% | -0.25% |
| December 10, 2024 | 3.25% | -0.50% |
| October 22, 2024 | 3.75% | -0.50% |
| September 3, 2024 | 4.25% | -0.25% |
| July 23, 2024 | 4.50% | -0.25% |
| June 4, 2024 | 4.75% | -0.25% |
| July 11, 2023 | 5.00% | +0.25% |
| June 6, 2023 | 4.75% | +0.25% |
| January 24, 2023 | 4.50% | +0.25% |
How Does the Policy Rate Change Affect Your Mortgage?
The policy rate has significant implications for variable-rate mortgages. These mortgage types are directly tied to the lender’s prime rate, which moves in tandem with the Bank of Canada’s policy rate changes.
For example, when the Bank of Canada cuts its rate by 0.25%, variable-rate mortgage holders typically see their interest costs decrease by the same amount, either through lower monthly payments (for adjustable-rate mortgages) or through more of their payment being applied to principal rather than interest (for variable-rate mortgages with fixed payments).
While not directly tied to the policy rate, fixed-rate mortgages are indirectly affected through bond markets. Fixed mortgage rates are primarily influenced by Government of Canada bond yields, which factor in expected movements in the key policy rate along with other market considerations.
What is the Bank of Canada’s Monetary Policy Report?
The Bank of Canada’s Monetary Policy Report provides comprehensive economic analysis and forecasts that explain rate decisions.
The Monetary Policy Report (MPR) is a quarterly publication released by the Bank of Canada that provides a detailed assessment of current economic conditions and the outlook for the Canadian economy. The MPR is published in January, April, July, and October, coinciding with four of the eight scheduled interest rate announcements.
The MPR is the primary tool through which the Bank of Canada communicates its economic analysis, forecasts, and reasoning behind its monetary policy decisions. It provides valuable insights into the factors that influence the Bank’s rate decisions and helps markets, businesses, and consumers understand the Bank’s perspective on the economy.
The Monetary Policy Report typically includes:
- Economic outlook: Detailed projections for GDP growth, inflation, and other key economic indicators for the next 2-3 years.
- Inflation assessment: Analysis of current inflation trends, underlying factors, and expectations for future inflation.
- Global economic context: Evaluation of international economic conditions and how they might affect Canada.
- Risks to the forecast: Identification of potential upside and downside risks that could alter the Bank’s economic projections.
- Monetary policy considerations: Explain how the Bank’s analysis translates into its interest rate decisions.
The most recent MPR was published in January 2025, with the next one scheduled for April 2025, coinciding with the April 16 interest rate announcement. These reports are available on the Bank of Canada’s website and provide essential context for understanding the Bank’s rate decisions.
FAQs about Bank of Canada Interest Rate Schedule
How often does the Bank of Canada announce interest rate decisions?
The Bank of Canada announces interest rate decisions eight times yearly on predetermined dates. These announcements occur approximately every six weeks and follow a schedule published in advance on the Bank of Canada's website.
What time are Bank of Canada rate announcements typically made?
Bank of Canada rate announcements are typically made at 09:45 AM Eastern Time on the scheduled announcement dates. They are immediately followed by a press release on the Bank of Canada's website explaining the decision.
Where can I find the next Bank of Canada rate announcement date?
The next Bank of Canada rate announcement date is on the Bank of Canada's official website under the "Key Interest Rate" section. Financial news websites, banks, and mortgage broker sites like BestMO also typically publish the upcoming announcement dates.
Do all Canadian lenders follow the Bank of Canada rate changes?
While most major Canadian lenders adjust their prime rates in response to Bank of Canada rate changes, they are not legally required to do so. Lenders might occasionally not pass on the full rate change or delay implementing changes. However, competitive pressures typically ensure that most lenders maintain their prime rate at similar levels.
The Bottom Line
By staying informed about the Bank’s rate schedule, you can better navigate your financial journey and find the best mortgage rates.
As we move through 2025, the Bank of Canada will continue to adjust its monetary policy in response to evolving economic conditions. The next rate announcement on April 16, 2025, will provide further insights into the Bank’s assessment of the economy and its rate path for the remainder of the year.
Contact our expert mortgage advisors at BestMO mortgage for personalized advice on how Bank of Canada rate changes affect your specific mortgage situation.
