10/28/2026
🚨 BREAKING: Bank of Canada Raises Interest Rate to 2.50%. First Hike Since July 2023.
The Bank of Canada raised its policy rate by a quarter point today, citing the risk that persistently high energy prices, driven by the Middle East conflict, spread into broader inflation. September CPI held near 3.1% year over year, and the Bank expects inflation to reach about 3.5% by the end of the year.
⚡ What this means for Canadians now:
🏠 Variable-rate mortgages and HELOCs get more expensive right away.
💳 Fixed rates may firm up if bond markets price in further hikes.
📊 The statement said there “could be a need to increase the policy rate further,” but the Bank will “proceed carefully,” one meeting at a time.
⚠️ Budget for a higher-for-longer rate environment. Talk to your lender about your renewal timeline.
Rates and figures per the Bank of Canada, Oct 28, 2026.