Bank of Canada Holds Interest Rate at 2.25%
On January 28, 2026, the Bank of Canada kept its key policy rate at 2.25%, marking the second consecutive hold. The Bank Rate remains at 2.5% and the deposit rate at 2.20%.
The decision reflects ongoing economic uncertainty, potential impacts from U.S. trade policy, and the need for further inflation moderation. The next rate update is set for March 18, 2026.
This hold signals a cautious approach to future rate changes, with market watchers keeping an eye on potential signs of economic weakness.
Why it matters: The BoC’s policy rate affects prime rates, which set costs for variable-rate mortgages, personal loans, and other credit. For Canadians, this pause provides stability in borrowing costs — at least for now.
