{"id":740117,"date":"2021-10-27T00:44:19","date_gmt":"2021-10-27T04:44:19","guid":{"rendered":""},"modified":"2026-04-29T12:07:04","modified_gmt":"2026-04-29T16:07:04","slug":"bank-of-canada-interest-rate-forecast","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/banking\/bank-of-canada-interest-rate-forecast","title":{"rendered":"Bank of Canada interest rate forecast report"},"content":{"rendered":"<h2>Finder: Bank of Canada Interest Rate Forecast Report<\/h2><p>The Bank of Canada (BoC) sets the official overnight rate \u2014 the benchmark target rate used by banks, credit unions and lenders to establish interest rates. This benchmark rate greatly impacts savings accounts, mortgages, interest rates charged on personal and car loans and other forms of debt, including credit cards and lines of credit.<\/p><div style=\"padding: 30px; background-color: #f0f7ff; border-radius: 10px;\"><p style=\"font-size: 20px; line-height: 24px; margin: 0 0 0 0rem;\">April 29, 2026, the BoC maintained <strong>the target benchmark interest rate<\/strong> at:<\/p><p style=\"font-size: 30px; color: #1d53ff; line-height: 70px; font-weight: bold;\">2.25%<\/p><p style=\"font-size: 20px; line-height: 24px; margin: 0 0 0 0rem;\">The next BoC interest rate decision is on:<\/p><p style=\"font-size: 30px; color: #1d53ff; line-height: 70px; font-weight: bold;\">June 10, 2026<\/p><p style=\"font-size: 20px; line-height: 24px; margin: 0 0 0 0rem;\">Of the experts surveyed in the <em>Finder: Bank of Canada Interest Rate Forecast<\/em> for the <strong>April 29 Policy Rate<\/strong> announcement:<\/p><p style=\"font-size: 30px; color: #1d53ff; line-height: 70px; font-weight: bold;\">100% predicted the policy rate would be held at 2.25%<\/p><\/div><h3>Latest BoC benchmark interest rate analysis from the experts<\/h3><hr><p>Finder regularly polls economists, analysts, professors and industry experts to forecast the Bank of Canada\u2019s next interest rate decision. Here are the most recent overnight rate predictions from Finder\u2019s economic expert panel:<\/p><style type=\"text\/css\">\r\n.imageCentre\r\n  {\r\n  margin:auto;\r\n  }\r\n  .rba-name\r\n  {\r\n  font-weight: 600;\r\n    font-size: 1.1em;\r\n  }\r\n  .rba_avatar_image {\r\n  border-radius: 70px;\r\n    border: 4px solid #eee;\r\n}\r\n  .rba_prediction_box {\r\n    border-radius: 4px;\r\n    background-color: #f6f6f6;\r\n    box-sizing: border-box;\r\n  width:40%;\r\n  float:left;\r\n  margin:10px;\r\n  height: 100%;\r\n  padding-top: 10px;\r\n  }\r\n  .correct\r\n  {\r\n      color: #27ae60;\r\n  }\r\n  .incorrect\r\n  {\r\n      color: black;\r\n  }\r\n  .correct:after {\r\n    content: '';\r\n    display: inline-block;\r\n    position: relative;\r\n    height: 16px;\r\n    width: 16px;\r\n    background: url(https:\/\/dvh1deh6tagwk.cloudfront.net\/finder-au\/wp-uploads\/2015\/02\/rate-icon.png) no-repeat -174px 1px;\r\n    left: 5px;\r\n    top: 1px;\r\n}\r\n  .incorrect:after {\r\n    content: '';\r\n    display: inline-block;\r\n    position: relative;\r\n    height: 16px;\r\n    width: 16px;\r\n    background: url(https:\/\/dvh1deh6tagwk.cloudfront.net\/finder-au\/wp-uploads\/2019\/07\/cancel-1-1.png) no-repeat -174px 1px;\r\n    left: 5px;\r\n    top: 1px;\r\n}\r\n<\/style>\r\n\r\n\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/65413135436d5.jpg?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/6541436e0d1cc.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/6541436e0d1cc.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/6541436e0d1cc.png?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Murshed Chowdhury, Associate Professor<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#d7992a44-5ba0-4d07-8e71-6f3991360920expander\">+ Insight from Murshed Chowdhury<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Murshed Chowdhury, Associate Professor<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#d7992a44-5ba0-4d07-8e71-6f3991360920expander\">+ Insight from Murshed Chowdhury<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"d7992a44-5ba0-4d07-8e71-6f3991360920expander\" class=\"collapse\"><div class=\"collapse-inner\">\"While macroeconomic indicators are not particularly strong, they are not overly concerning yet. Inflation is within the target range, and the gap with the Fed has narrowed. Given the uncertainty surrounding the duration and impact of war in the Middle East, the Bank is likely to hold the rate to maintain some policy flexibility in the near term.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/654132ea784b9.png?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65414608484ed.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65414608484ed.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65414608484ed.png?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Philip Cross, Senior Fellow<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#fec4a0ce-ced2-4f37-95b0-1c9a7f470b0bexpander\">+ Insight from Philip Cross<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Philip Cross, Senior Fellow<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#fec4a0ce-ced2-4f37-95b0-1c9a7f470b0bexpander\">+ Insight from Philip Cross<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"fec4a0ce-ced2-4f37-95b0-1c9a7f470b0bexpander\" class=\"collapse\"><div class=\"collapse-inner\">\"Continuing uncertainty about the global economy and Iran war.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/654135308dc31.jpg?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/6541407ebb8d0.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/6541407ebb8d0.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/6541407ebb8d0.png?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Nikola Gradojevic, Professor of Finance<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#1330c04b-8e82-4b94-be4f-98c38ff6dd22expander\">+ Insight from Nikola Gradojevic<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Nikola Gradojevic, Professor of Finance<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#1330c04b-8e82-4b94-be4f-98c38ff6dd22expander\">+ Insight from Nikola Gradojevic<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"1330c04b-8e82-4b94-be4f-98c38ff6dd22expander\" class=\"collapse\"><div class=\"collapse-inner\">\"There is too much geopolitical uncertainty at the moment and no clear direction for future interest rates. Inflation is likely to tick upward, even as the real economy remains weak.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/65413854bfbc5.png?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65413854ad9e8.jpeg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65413854ad9e8.jpeg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65413854ad9e8.jpeg?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Sebastien Lavoie, Chief Economist<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#83a8060e-3a80-4c94-a91c-2f5e173f67aaexpander\">+ Insight from Sebastien Lavoie<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Sebastien Lavoie, Chief Economist<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#83a8060e-3a80-4c94-a91c-2f5e173f67aaexpander\">+ Insight from Sebastien Lavoie<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\nN\/A\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"83a8060e-3a80-4c94-a91c-2f5e173f67aaexpander\" class=\"collapse\"><div class=\"collapse-inner\">\"Although models tend to show the pass-through of supply oil and fertilizer shocks tend to gradually push core CPI inflation upward for several quarters ahead, it is preferable for the BoC to wait rather than lean in favour of rate hikes at this stage. Also, it is preferable from a risk management standpoint to wait until the CUSMA negotiations is clear.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/654138e7a6947.png?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654138e796dbb.jpg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654138e796dbb.jpg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654138e796dbb.jpg?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Lars Osberg, Professor of Economics<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#ca9edc0a-518e-4eb9-a2fa-0c709dcd4558expander\">+ Insight from Lars Osberg<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Lars Osberg, Professor of Economics<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#ca9edc0a-518e-4eb9-a2fa-0c709dcd4558expander\">+ Insight from Lars Osberg<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"ca9edc0a-518e-4eb9-a2fa-0c709dcd4558expander\" class=\"collapse\"><div class=\"collapse-inner\">\"Uncertainty dominates decision making.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/654137be65b3f.jpeg?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/654137be55d3f.jpg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/654137be55d3f.jpg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/654137be55d3f.jpg?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Moshe Lander, Senior Lecturer in Economics<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#600c12d7-684d-4aed-8a8b-21776dca9861expander\">+ Insight from Moshe Lander<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Moshe Lander, Senior Lecturer in Economics<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#600c12d7-684d-4aed-8a8b-21776dca9861expander\">+ Insight from Moshe Lander<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"600c12d7-684d-4aed-8a8b-21776dca9861expander\" class=\"collapse\"><div class=\"collapse-inner\">\"Despite an increase in the inflation rate for March, it is still well within the Bank's target range.  Inflation will creep up in April as the elimination of the carbon tax last year falls out of the 12-month calculation and because of increased price pressure due to the closure of the Strait of Hormuz, but the decision to suspend the federal gasoline tax until September should help alleviate some of that.  The Bank can leave the overnight rate for now and revisit the situation in June.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/6541411d37963.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/6541411d37963.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/6541411d37963.png?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/6541411d37963.png?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/6541411d37963.png?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/6541411d37963.png?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65413a2da6578.jpeg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65413a2da6578.jpeg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65413a2da6578.jpeg?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Carl Gomez, Chief Economist and Head of Market Analytics<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#5e41089a-5ead-4879-9b1f-1aaf67cd47f9expander\">+ Insight from Carl Gomez<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Carl Gomez, Chief Economist and Head of Market Analytics<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#5e41089a-5ead-4879-9b1f-1aaf67cd47f9expander\">+ Insight from Carl Gomez<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"5e41089a-5ead-4879-9b1f-1aaf67cd47f9expander\" class=\"collapse\"><div class=\"collapse-inner\">\"Economic growth is restrained but inflation risks have increased due to the tensions in the Middle East. With the policy rate sitting at accommodative levels, the Bank of Canada will be content to remain on the sidelines for now.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/65678e575dcc7.jpg?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65678e572ffbd.jpeg\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65678e572ffbd.jpeg?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65678e572ffbd.jpeg?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Pierre Siklos, Professor of Economics<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#9f3b3cb0-9747-4f5c-820d-e0a78f4da639expander\">+ Insight from Pierre Siklos<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Pierre Siklos, Professor of Economics<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#9f3b3cb0-9747-4f5c-820d-e0a78f4da639expander\">+ Insight from Pierre Siklos<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"9f3b3cb0-9747-4f5c-820d-e0a78f4da639expander\" class=\"collapse\"><div class=\"collapse-inner\">\"Still too early to tell how the latest supply shock will pan out. The Bank, in view of US rates, can afford to wait.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\">\r\n\r\n<div class=\"u-grid clearfix u-grid--gutterCollapse\">\r\n<div class=\"u-grid__col u-1\/6@s text-center imageCentre \"><img decoding=\"async\" alt=\"\" class=\" lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png?fit=360 360w, https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png?fit=600 600w, https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png?fit=900 900w, https:\/\/www.finder.com\/niche-builder\/65412f5071f30.png?fit=1200 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/6@s text-center\"><img decoding=\"async\" alt=\"\" width=\"100\" height=\"100\" class=\"rba_avatar_image lazyloaded\" src=\"https:\/\/www.finder.com\/niche-builder\/65412f505e29c.webp\" srcset=\"https:\/\/www.finder.com\/niche-builder\/65412f505e29c.webp?fit=180 180w, https:\/\/www.finder.com\/niche-builder\/65412f505e29c.webp?fit=300 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" loading=\"lazy\"><\/div>\r\n<div class=\"u-grid__col u-1\/3@s \" style=\"margin:auto;\">\r\n<div class=\"is-visible@s is-hidden\"><p class=\"rba-name\">Angelo Melino, Professor of Economics<\/p> <div class=\"is-visible@s is-hidden\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#9b1f7e13-5047-4ac1-abe2-17b1ea708272expander\">+ Insight from Angelo Melino<\/a><\/div><\/div>\r\n<div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\" class=\"rba-name\">Angelo Melino, Professor of Economics<\/p> <div class=\"is-visible is-hidden@s\"><p style=\"text-align: center;\"><a class=\"btn btn-sml btn--ghost\" rel=\"noopener noreferrer\" data-toggle=\"collapse\" data-target=\"#9b1f7e13-5047-4ac1-abe2-17b1ea708272expander\">+ Insight from Angelo Melino<\/a><\/p><\/div>\r\n  <\/div><\/div>\r\n<div class=\"u-grid__col u-1\/3@s\">\r\n<div class=\" text-center rba_prediction_box\">\r\n<h6>March<\/h6>\r\n<span class=\"correct\">HOLD<\/span>\r\n<\/div>\r\n<div class=\"text-center rba_prediction_box\">\r\n<h6>April<\/h6>\r\n\r\n<span class=\"correct\">HOLD<\/span>\r\n\r\n<\/div>\r\n  <\/div>\r\n<\/div>\r\n<div class=\"finder-accordion clearfix\"><div id=\"9b1f7e13-5047-4ac1-abe2-17b1ea708272expander\" class=\"collapse\"><div class=\"collapse-inner\">\"There are a lot of risks to the inflation outlook, most importantly the war in the Middle East and the upcoming CUSMA negotiations. It's not clear how (or when they will be resolved). The Bank will want to wait until there is more clarity rather than act and potentially be forced to quickly change direction.\"<\/div><\/div><\/div>\r\n\u00a0\r\n<hr class=\"hr-thin\"><hr><div style=\"padding: 30px; background-color: #f0f7ff; border-radius: 10px;\"><p style=\"font-size: 30px; color: #1d53ff; line-height: 70px; font-weight: bold;\">How low is the overnight rate expected to go over the next 12 months?<\/p><p style=\"font-size: 20px; line-height: 24px; margin: 0 0 0 0rem;\">When asked how low the overnight rate will go over the next 12 months, <strong>45%<\/strong> of economists surveyed in the September 2025 Finder report believe the rate will drop to <strong>2.00%<\/strong> by September 2026.<\/p><\/div><h3>What is the Bank of Canada\u2019s official policy interest rate?<\/h3><p>The BoC does not set monetary policy; however, Canada\u2019s central bank works with the federal government to establish monetary policy, and the primary tool used by the BoC is to make changes to the overnight target rate. By adjusting the target for the overnight rate, the BoC influences short-term interest rates \u2014 with an almost immediate impact on all variable-rate credit instruments, including <a href=\"https:\/\/www.finder.com\/ca\/personal-loans\/line-of-credit\">lines of credit<\/a>, personal loans, credit cards, mortgage rates and interest earned on <a href=\"https:\/\/www.finder.com\/ca\/savings-accounts\/best-high-interest-savings-accounts\">savings accounts<\/a>.<\/p><p>The BoC can adjust the overnight rate at any of its eight fixed-date interest rate announcements.<\/p><h3>How the official BoC benchmark affects interest rates<\/h3><p>While a change in the BoC\u2019s target rate does not impact consumers directly, it does trigger a change in the interest rate that banks and other institutions use for loans, mortgages and other forms of credit. A change in rates can also impact savers, as interest rates on savings accounts and <a href=\"https:\/\/www.finder.com\/ca\/gics\">GICs<\/a> also fluctuate with the overnight rate.<\/p><p>Still, for the average Canadian, the BoC target rate can be useful. When the BoC moves to lower the target rate, it signals that it wants to help stimulate the economy. The theory is that by making it cheaper to borrow money, there\u2019s a boost in borrowing and spending. An increase in the overnight rate makes borrowing money more expensive but helps savers earn more.<\/p><p>The Bank of Canada adjusts the target rate in response to various economic conditions, including data regarding: inflation, unemployment rates and global economic factors.<\/p><h3>How does the BoC interest rate decision affect your finances?<\/h3><p>The BoC can take three actions during an interest rate announcement: Raise, lower or hold the target rate.<\/p><p>The Bank of Canada adjusts the target rate in response to various economic conditions, including data regarding: inflation, unemployment rates and global economic factors.<\/p><hr><div class=\"u-grid\"><div class=\"u-grid__col u-1\/5@s\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2490626\" title=\"Icon from www.flaticon.com\" src=\"https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/up-arrow.png\" alt=\"Raise\" width=\"70\" height=\"70\" srcset=\"https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/up-arrow.png?fit=180 180w, https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/up-arrow.png?fit=210 210w\" sizes=\"(max-width: 210px) 100vw, 210px\" loading=\"lazy\"><\/div><div class=\"u-grid__col u-4\/5@s\"><h4>Raise interest rates<\/h4><p>When the BoC raises the overnight rate, almost all lenders will pass on this rate hike to borrowers. This increase will impact all variable-rate loans, including mortgages, lines of credit, payday or short-term loans and interest earned on savings accounts. For instance, if the BoC raises the overnight rate by 25 basis points, then most borrowers will see a 25 basis point increase in their variable-rate mortgage. However, homeowners with a fixed-rate mortgage will not be impacted by this rate change, as the rate is locked in for the duration of the mortgage contract (known as the term).<\/p><p>For savers, a rate increase can also prompt an increase in interest rates offered on savings accounts, high-interest savings accounts, and GICs.<\/p><p>Typically, banks and other institutions will pass on rate increases to credit faster than rate increases to savings products.<\/p><\/div><\/div><div class=\"u-grid\"><div class=\"u-grid__col u-1\/5@s\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2490626\" title=\"Icon from www.flaticon.com\" src=\"https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/down-arrow.png\" alt=\"Down\" width=\"70\" height=\"70\" srcset=\"https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/down-arrow.png?fit=180 180w, https:\/\/www.finder.com\/finder-au\/wp-uploads\/2023\/04\/down-arrow.png?fit=210 210w\" sizes=\"(max-width: 210px) 100vw, 210px\" loading=\"lazy\"><\/div><div class=\"u-grid__col u-4\/5@s\"><h4>Drop interest rates<\/h4><p>When the BoC lowers the overnight rate, most lenders will pass on some or all of this rate cut to borrowers. Like a rate increase, a rate cut will impact variable-rate loans, including mortgages.<\/p><p>A rate cut will also reduce the interest earned on savings accounts and GICs.<\/p><\/div><\/div><div class=\"u-grid\"><div class=\"u-grid__col u-1\/5@s\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2490626\" title=\"Icon from www.flaticon.com\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2023\/08\/8.png\" alt=\"Down\" width=\"70\" height=\"70\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2023\/08\/8.png?fit=180 180w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2023\/08\/8.png?fit=210 210w\" sizes=\"(max-width: 210px) 100vw, 210px\" loading=\"lazy\"><\/div><div class=\"u-grid__col u-4\/5@s\"><h4>Hold interest rates<\/h4><p>When the BoC decides to hold the overnight rate it means no change to interest rates.<\/p><p>Typically, this is done when the BoC is waiting to see how economic factors are unfolding both within Canada and around the world. Another reason is that the BoC is on target \u2014 which means the current inflation rate is between 1% and 3%.<\/p><\/div><\/div><article id=\"Did-you-know-statistic\" class=\"luna-card--alt\" style=\"border-radius: 8px;\"><div class=\"luna-card__block\" style=\"margin: 20px;\"><div class=\"u-grid\"><div class=\"u-grid__col u-1\/5@s u-1\/1\" style=\"margin: auto 0; padding: 0;\"><img decoding=\"async\" class=\" wp-image-1039342 aligncenter\" title=\"Image: Finder\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2024\/07\/Nesto-0074.jpg\" alt=\"Chase Blair - Nesto Co-Founder\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2024\/07\/Nesto-0074.jpg?fit=180 180w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2024\/07\/Nesto-0074.jpg?fit=360 360w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/5\/2024\/07\/Nesto-0074.jpg?fit=450 450w\" sizes=\"(max-width: 450px) 100vw, 450px\" loading=\"lazy\"><\/div><div class=\"u-grid__col u-4\/5@s u-1\/1\" style=\"margin: auto 0;\"><div style=\"font-size: 22px;\"><b>Expert Opinion: What does a rate reduction mean for Canadian borrowers?<\/b><\/div><p>\u00a0<\/p><div style=\"font-size: 18px;\"><p>June\u2019s inflationary pressures easing in Canada and the US signals possible rate cuts next week, providing some immediate relief to Canadian borrowers holding variable and adjustable mortgages. Canadian bond yields continue to lower due to pressures from US yields, which could lead to lower fixed mortgage rates in the weeks and months ahead. With a slew of studies showing the limited housing supply in the country, we expect lower rates could prompt Canadian consumers to move off the sidelines, giving them peace of mind to lock in their mortgage or renewal over the year.<\/p><p>Chase Belair \u2013 Co-founder and Principal Broker at nesto<\/p><p>\u00a0<\/p><\/div><\/div><\/div><\/div><\/article><div style=\"padding: 8px; padding-bottom: 0px; background-color: #f0f7ff; border-radius: 10px;\"><article style=\"margin: 0 auto;\"><div class=\"luna-card__block\" style=\"margin: 10px;\"><h4>Example: How a rate hike or cut can change your variable-rate loan repayments<\/h4><p>If the loan you negotiated with your lender charges a variable interest rate, then your payments can fluctuate when the Bank of Canada changes the overnight rate.<\/p><p>For instance, if you negotiated a five-year <a href=\"https:\/\/www.finder.com\/ca\/car-loans\/car-loan-interest-rates\">car loan<\/a> of $25,000 in August 2023, with a variable rate of prime plus 1.50%, then your monthly repayments would be just over $511. (The bank prime rate is 7.2%, as of September 1, 2023, making the interest charged on this loan 8.7%).<\/p><p><b>\u2b06\ufe0f If the overnight rate rises by 25 basis points<\/b> your <a href=\"https:\/\/www.finder.com\/ca\/car-loans\/car-loan-interest-rates\">car loan interest rate<\/a> would increase to 8.95% and increase your monthly car loan repayment to just over $514 \u2014 an extra $2.80 per month or $33.60 per year.<\/p><p><b>\u2b07\ufe0f If the overnight rate decreases by 25 basis points<\/b> your interest rate would fall to 8.45% and monthly repayments could fall to under $508 \u2014 a reduction of $2.80 per month or $33.60 per year.<\/p><p>You can find variable interest rates on mortgages, credit cards, <a href=\"https:\/\/www.finder.com\/ca\/personal-loans\/online-loans\">personal loans<\/a>, car loans, <a href=\"https:\/\/www.finder.com\/ca\/business-loans\/business-line-of-credit\">business loans<\/a>, derivatives and corporate bonds.<\/p><\/div><\/article><\/div><div style=\"padding: 8px; padding-bottom: 0px; background-color: #f0f7ff; border-radius: 10px;\"><article style=\"margin: 0 auto;\"><div class=\"luna-card__block\" style=\"margin: 10px;\"><h4>Example: How a rate hike or cut can change your variable-rate mortgage payments<\/h4><p>As a homeowner, you negotiated a 5.5% variable rate on a $450,000 mortgage for a 5-year term (based on an amortization of 25 years).<\/p><p>Based on your initial home loan contract, your monthly mortgage payment is just under $2,765.<\/p><p><b>\u2b06\ufe0f If the overnight rate rises by 25 basis points<\/b> your interest rate would increase to 5.75%. Your monthly mortgage payment would increase to just over $2,830 \u2014 an extra $65 per month or $780 a year.<\/p><p><b>\u2b07\ufe0f If the overnight rate decreases by 25 basis points<\/b> your interest rate would fall to 5.25%. Your monthly mortgage payment would decrease to approximately $2,695 \u2014 a reduction of $70 per month, for a savings of approximately $840 a year.<\/p><\/div><\/article><\/div><section style=\"margin-bottom: 20px;\"><\/section><ul class=\"luna-accordionGroup accordionGroup\">\n\t<h3>More questions about the Bank of Canada's interest rate<\/h3><li class=\"luna-accordion\" data-accordion=\"accordion\">\n    <div class=\"luna-accordion__summary\">\n        <h4 class=\"luna-accordion__heading\">\n            <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"faq-builder-0000000000\" data-toggle=\"collapse\" data-target=\"#faq-builder-0000000000\">\n                <span class=\"luna-accordion__title\">Why do interest rates change?<\/span>\n                <svg class=\"luna-icon\" aria-hidden=\"true\">\n                    <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n                    <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n                <\/svg>\n            <\/button>\n        <\/h4>\n    <\/div>\n    <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"faq-builder-0000000000\" data-accordion=\"details\">\n        <div class=\"accordionContent\">\n            <div>\n                <p>Interest rates fluctuate all the time. The interest rate dictates how much it costs to borrow money. Like most services, this cost of borrowing will change based on the market. However, market forces also dictate whether or not interest rates will rise or fall. For instance, if analysts are uncertain about near or long-term economic forces, this can prompt lenders to be more careful about lending, which can increase interest rates. That said, various market forces can influence interest rates, such as economic growth, international trade and inflationary pressures. <\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/li>\n<li class=\"luna-accordion\" data-accordion=\"accordion\">\n    <div class=\"luna-accordion__summary\">\n        <h4 class=\"luna-accordion__heading\">\n            <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"faq-builder-0000000001\" data-toggle=\"collapse\" data-target=\"#faq-builder-0000000001\">\n                <span class=\"luna-accordion__title\">Why does the Bank of Canada interest rate change?<\/span>\n                <svg class=\"luna-icon\" aria-hidden=\"true\">\n                    <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n                    <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n                <\/svg>\n            <\/button>\n        <\/h4>\n    <\/div>\n    <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"faq-builder-0000000001\" data-accordion=\"details\">\n        <div class=\"accordionContent\">\n            <div>\n                <p>Analysts and experts at the Bank of Canada (BoC) will monitor, assess and run predictive models to determine whether or not to influence Canada's monetary policy using the Bank's target rate (aka: overnight rate). The BoC uses the target rate to influence what lenders charge on variable-rate loans, such as variable-rate mortgages, lines of credit, and interest earned on savings accounts. When the BoC wants to stimulate the economy, they will lower the overnight rate, which prompts a drop in interest rates. If the BoC wants to help cool the economy, there is a hike in the target rate, prompting an increase in variable interest rates.<\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/li>\n<li class=\"luna-accordion\" data-accordion=\"accordion\">\n    <div class=\"luna-accordion__summary\">\n        <h4 class=\"luna-accordion__heading\">\n            <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"faq-builder-0000000002\" data-toggle=\"collapse\" data-target=\"#faq-builder-0000000002\">\n                <span class=\"luna-accordion__title\">What is the Bank of Canada's role?<\/span>\n                <svg class=\"luna-icon\" aria-hidden=\"true\">\n                    <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n                    <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n                <\/svg>\n            <\/button>\n        <\/h4>\n    <\/div>\n    <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"faq-builder-0000000002\" data-accordion=\"details\">\n        <div class=\"accordionContent\">\n            <div>\n                <p>The Bank of Canada is the country's central bank. The BoC's main role is to monitor and promote the economic and financial welfare of the country, as defined by the <a href=\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-2\/FullText.html\" target=\"_blank\" rel=\"noopener\"><em>Bank of Canada Act<\/em><\/a>.<\/p><p>The BoC has five main areas of responsibility:<\/p><ol><li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/monetary-policy\/\" target=\"_blank\" rel=\"noopener\">Monetary policy<\/a>: The Bank will use monetary policy to influence the supply of money circulating in the economy with the aim of keeping inflation low and economic growth stable.<\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/financial-system\/\" target=\"_blank\" rel=\"noopener\">Financial system<\/a>: The BoC will take actions to promote safe, sound and efficient financial systems within Canada and internationally. In this way, the BoC will conduct transactions in financial markets supporting these objectives.<\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/currency\/\" target=\"_blank\" rel=\"noopener\">Currency<\/a>: The BoC designs, issues and distributes Canada's bank notes.<\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/funds-management\/\" target=\"_blank\" rel=\"noopener\">Funds management<\/a>: The Bank of Canada is the \"fiscal agent\" for the Government of Canada, managing its public debt programs and foreign exchange reserves.<\/li><li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/retail-payments-supervision\/\" target=\"_blank\" rel=\"noopener\">Retail payments supervision<\/a>: The Bank will supervise payment service providers according to the <em><a href=\"https:\/\/laws-lois.justice.gc.ca\/eng\/acts\/r-7.36\/FullText.html\" target=\"_blank\" rel=\"noopener\">Retail Payment Activities Act<\/a><\/em>.<\/li><\/ol><p>Setting the official overnight rate is one of the Bank's key monetary policy tools. The Bank will announce potential rate changes during one of eight annual, pre-scheduled rate announcements. Based on current economic data and BoC analysis, the Bank will either cut, raise or hold the overnight interest rate.<\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/li>\n<li class=\"luna-accordion\" data-accordion=\"accordion\">\n    <div class=\"luna-accordion__summary\">\n        <h4 class=\"luna-accordion__heading\">\n            <button class=\"luna-accordion__action collapsed\" aria-expanded=\"false\" aria-controls=\"faq-builder-0000000003\" data-toggle=\"collapse\" data-target=\"#faq-builder-0000000003\">\n                <span class=\"luna-accordion__title\">How often does the Bank of Canada meet?<\/span>\n                <svg class=\"luna-icon\" aria-hidden=\"true\">\n                    <use xlink:href=\"#chevron-down\" data-accordion-icon=\"show\"><\/use>\n                    <use xlink:href=\"#chevron-up\" data-accordion-icon=\"hide\" class=\"is-hidden\"><\/use>\n                <\/svg>\n            <\/button>\n        <\/h4>\n    <\/div>\n    <div class=\"luna-accordion__details collapse\" aria-hidden=\"true\" id=\"faq-builder-0000000003\" data-accordion=\"details\">\n        <div class=\"accordionContent\">\n            <div>\n                <p>The Bank of Canada sets eight scheduled dates each year, where it announces the setting for the overnight rate target. The announcement is followed by a press release explaining the factors behind the decision.<\/p>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/li>\n\n<\/ul>\n<div class=\"box has-shadow\">\n<h3>About Finder<\/h3>\n<p><a href=\"https:\/\/www.finder.com\/ca\">Finder<\/a> is a personal finance comparison site with a mission to help Canadians save, invest, spend wisely and grow their wealth. Each month, Finder provides half a million Canadians \u2013 and more than five million globally \u2013 with independent and trustworthy financial information. Our goal is to help people make better financial decisions by providing objective, comparative insight on thousands of products and services.<\/p>\n\n<p>As a global fintech website and app, Finder provides consumers free access to smart money content. Whether it's expert insight, product or service comparisons or independent reviews, Finder helps consumers stay on top of their finances while saving time and money.<\/p>\n\n<p>Finder is available to consumers in Canada, Australia, America and the United Kingdom. Initially launched in 2006 by three Australians \u2013 Fred Schebesta, Frank Restuccia and Jeremy Cabral \u2013 Finder's global reach now includes thousands of products and services in hundreds of financial categories and provides expert content and independent reviews to more than five million users each month.<\/p>\n\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Read Finder\u2019s BoC Interest Rate Report for forecasts from some of Canada&#8217;s brightest minds in economics and learn more about how recent rate increases could affect Canada\u2019s real estate market.<\/p>\n","protected":false},"author":1275,"featured_media":741263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[5550],"tags":[5440,107226,107250],"asset_tag":[],"class_list":["post-740117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-latest-1","tag-research-post","tag-trending-home"],"apple_news_notices":[],"yoast_head":"<!-- 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The interest rate dictates how much it costs to borrow money. Like most services, this cost of borrowing will change based on the market. However, market forces also dictate whether or not interest rates will rise or fall. For instance, if analysts are uncertain about near or long-term economic forces, this can prompt lenders to be more careful about lending, which can increase interest rates. That said, various market forces can influence interest rates, such as economic growth, international trade and inflationary pressures. \"}},{\"@type\":\"Question\",\"name\":\"Why does the Bank of Canada interest rate change?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\\r\\rAnalysts and experts at the Bank of Canada (BoC) will monitor, assess and run predictive models to determine whether or not to influence Canada's monetary policy using the Bank's target rate (aka: overnight rate). The BoC uses the target rate to influence what lenders charge on variable-rate loans, such as variable-rate mortgages, lines of credit, and interest earned on savings accounts. When the BoC wants to stimulate the economy, they will lower the overnight rate, which prompts a drop in interest rates. If the BoC wants to help cool the economy, there is a hike in the target rate, prompting an increase in variable interest rates.\\r\\r\"}},{\"@type\":\"Question\",\"name\":\"What is the Bank of Canada's role?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\\r\\rThe Bank of Canada is the country's central bank. The BoC's main role is to monitor and promote the economic and financial welfare of the country, as defined by the <a href=\\\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-2\/FullText.html\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\"><em>Bank of Canada Act<\/em><\/a>.\\r\\rThe BoC has five main areas of responsibility:\\r<ol>\\r \\t<li><a href=\\\"https:\/\/www.bankofcanada.ca\/core-functions\/monetary-policy\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Monetary policy<\/a>: The Bank will use monetary policy to influence the supply of money circulating in the economy with the aim of keeping inflation low and economic growth stable.<\/li>\\r \\t<li><a href=\\\"https:\/\/www.bankofcanada.ca\/core-functions\/financial-system\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Financial system<\/a>: The BoC will take actions to promote safe, sound and efficient financial systems within Canada and internationally. In this way, the BoC will conduct transactions in financial markets supporting these objectives.<\/li>\\r \\t<li><a href=\\\"https:\/\/www.bankofcanada.ca\/core-functions\/currency\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Currency<\/a>: The BoC designs, issues and distributes Canada's bank notes.<\/li>\\r \\t<li><a href=\\\"https:\/\/www.bankofcanada.ca\/core-functions\/funds-management\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Funds management<\/a>: The Bank of Canada is the \\\"fiscal agent\\\" for the Government of Canada, managing its public debt programs and foreign exchange reserves.<\/li>\\r \\t<li><a href=\\\"https:\/\/www.bankofcanada.ca\/core-functions\/retail-payments-supervision\/\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Retail payments supervision<\/a>: The Bank will supervise payment service providers according to the <em><a href=\\\"https:\/\/laws-lois.justice.gc.ca\/eng\/acts\/r-7.36\/FullText.html\\\" target=\\\"_blank\\\" rel=\\\"noopener\\\">Retail Payment Activities Act<\/a><\/em>.<\/li>\\r<\/ol>\\rSetting the official overnight rate is one of the Bank's key monetary policy tools. The Bank will announce potential rate changes during one of eight annual, pre-scheduled rate announcements. Based on current economic data and BoC analysis, the Bank will either cut, raise or hold the overnight interest rate.\\r\\r\"}},{\"@type\":\"Question\",\"name\":\"How often does the Bank of Canada meet?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\\r\\rThe Bank of Canada sets eight scheduled dates each year, where it announces the setting for the overnight rate target. 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We compare everything from bank accounts, personal loans, investing platforms and much more.","email":"heythere@finder.com","legalName":"Finder","foundingDate":"2006-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"51","maxValue":"200"}},{"@type":"Person","@id":"https:\/\/www.finder.com\/ca\/#\/schema\/person\/6c63e632a66b450c8cfd2d8d3bb54ac7","name":"Romana King","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.finder.com\/ca\/#\/schema\/person\/image\/","url":"https:\/\/cdn.finder.com.au\/finder-us\/wp-uploads\/2025\/12\/RomanaKingF1_Finder_600x600.png","contentUrl":"https:\/\/cdn.finder.com.au\/finder-us\/wp-uploads\/2025\/12\/RomanaKingF1_Finder_600x600.png","caption":"Romana King"},"description":"Romana King was the Canada group editor at Finder and a personal finance expert. As an award-winning personal finance writer and real estate expert, she has spent almost two decades helping Canadians make smarter money management decisions. Her first book, House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth, launched in November 2021, continues to be an Amazon bestseller and won the Excellence in Financial Journalism Book Award in 2022.","sameAs":["https:\/\/twitter.com\/RKHomeowner","https:\/\/www.facebook.com\/RKHomeowner\/","https:\/\/www.romanaking.com\/house-poor-no-more\/","https:\/\/www.amazon.ca\/House-Poor-No-More-Steps\/dp\/1544526288"],"url":"https:\/\/www.finder.com\/ca\/author\/romanaking","jobTitle":"Group Editor | Personal finance expert","knowsAbout":[{"@type":"Thing","name":"Personal Finance"},{"@type":"Thing","name":"Real Estate"},{"@type":"Thing","name":"Estate Planning"},{"@type":"Thing","name":"Insurance"},{"@type":"Thing","name":"Retirement Planning"},{"@type":"Thing","name":"Debt Strategies"}],"worksFor":{"@type":"Organization","@id":"https:\/\/www.finder.com\/ca\/#organization","name":"Finder"}},{"@context":"https:\/\/schema.org","@type":"FAQPage","name":"Frequently Asked Questions","mainEntity":[{"@type":"Question","name":"Why do interest rates change?","acceptedAnswer":{"@type":"Answer","text":"\r\rInterest rates fluctuate all the time. The interest rate dictates how much it costs to borrow money. Like most services, this cost of borrowing will change based on the market. However, market forces also dictate whether or not interest rates will rise or fall. For instance, if analysts are uncertain about near or long-term economic forces, this can prompt lenders to be more careful about lending, which can increase interest rates. That said, various market forces can influence interest rates, such as economic growth, international trade and inflationary pressures. "}},{"@type":"Question","name":"Why does the Bank of Canada interest rate change?","acceptedAnswer":{"@type":"Answer","text":"\r\rAnalysts and experts at the Bank of Canada (BoC) will monitor, assess and run predictive models to determine whether or not to influence Canada's monetary policy using the Bank's target rate (aka: overnight rate). The BoC uses the target rate to influence what lenders charge on variable-rate loans, such as variable-rate mortgages, lines of credit, and interest earned on savings accounts. When the BoC wants to stimulate the economy, they will lower the overnight rate, which prompts a drop in interest rates. If the BoC wants to help cool the economy, there is a hike in the target rate, prompting an increase in variable interest rates.\r\r"}},{"@type":"Question","name":"What is the Bank of Canada's role?","acceptedAnswer":{"@type":"Answer","text":"\r\rThe Bank of Canada is the country's central bank. The BoC's main role is to monitor and promote the economic and financial welfare of the country, as defined by the <a href=\"http:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-2\/FullText.html\" target=\"_blank\" rel=\"noopener\"><em>Bank of Canada Act<\/em><\/a>.\r\rThe BoC has five main areas of responsibility:\r<ol>\r \t<li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/monetary-policy\/\" target=\"_blank\" rel=\"noopener\">Monetary policy<\/a>: The Bank will use monetary policy to influence the supply of money circulating in the economy with the aim of keeping inflation low and economic growth stable.<\/li>\r \t<li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/financial-system\/\" target=\"_blank\" rel=\"noopener\">Financial system<\/a>: The BoC will take actions to promote safe, sound and efficient financial systems within Canada and internationally. In this way, the BoC will conduct transactions in financial markets supporting these objectives.<\/li>\r \t<li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/currency\/\" target=\"_blank\" rel=\"noopener\">Currency<\/a>: The BoC designs, issues and distributes Canada's bank notes.<\/li>\r \t<li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/funds-management\/\" target=\"_blank\" rel=\"noopener\">Funds management<\/a>: The Bank of Canada is the \"fiscal agent\" for the Government of Canada, managing its public debt programs and foreign exchange reserves.<\/li>\r \t<li><a href=\"https:\/\/www.bankofcanada.ca\/core-functions\/retail-payments-supervision\/\" target=\"_blank\" rel=\"noopener\">Retail payments supervision<\/a>: The Bank will supervise payment service providers according to the <em><a href=\"https:\/\/laws-lois.justice.gc.ca\/eng\/acts\/r-7.36\/FullText.html\" target=\"_blank\" rel=\"noopener\">Retail Payment Activities Act<\/a><\/em>.<\/li>\r<\/ol>\rSetting the official overnight rate is one of the Bank's key monetary policy tools. The Bank will announce potential rate changes during one of eight annual, pre-scheduled rate announcements. Based on current economic data and BoC analysis, the Bank will either cut, raise or hold the overnight interest rate.\r\r"}},{"@type":"Question","name":"How often does the Bank of Canada meet?","acceptedAnswer":{"@type":"Answer","text":"\r\rThe Bank of Canada sets eight scheduled dates each year, where it announces the setting for the overnight rate target. The announcement is followed by a press release explaining the factors behind the decision.\r\r"}}]}]},"article_modified_time":"2026-04-29T12:07:07+00:00"},"custom_fields":{"_masthead_subheading":["{\"text\":\"April update: B.O.C holds policy rate at 2.25% as predicted by 100% of economists surveyed in April 29, rate announcement\"}"],"_masthead_variant":["{\"id\":\"standard-blue\",\"showFeaturedImage\":false,\"presetId\":\"\",\"shouldUsePrimaryCTAFieldName\":false,\"shouldUseSecondaryCTAFieldName\":false,\"primaryCTA\":null,\"secondaryCTA\":null,\"widgetShortcode\":\"\",\"widgetHeading\":\"\",\"widgetStats\":\"\",\"hasPrioritizedWidget\":false,\"hasMaximizedWidget\":false,\"shouldUseOverrideCTALabel\":false,\"overrideCTA\":null,\"cleanTopPicks\":\"\",\"tilesMenuId\":\"\"}"],"_content_type":["pr\/content-marketing\/content-marketing-article"],"custom_post_template":["single-masthead-one-column.php"]},"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/posts\/740117"}],"collection":[{"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/users\/1275"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/comments?post=740117"}],"version-history":[{"count":24,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/posts\/740117\/revisions"}],"predecessor-version":[{"id":1076809,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/posts\/740117\/revisions\/1076809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/media\/741263"}],"wp:attachment":[{"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/media?parent=740117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/categories?post=740117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/tags?post=740117"},{"taxonomy":"asset_tag","embeddable":true,"href":"https:\/\/www.finder.com\/ca\/wp-json\/wp\/v2\/asset_tag?post=740117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}