The Bank of Canada’s 1st rate decision of 2026 is almost here
Global News
The Bank of Canada is set to make its first interest rate announcement of the year amid a number of mixed economic signals about the state of how consumers are doing.
The Bank of Canada is set to make its first announcement on interest rates this year on Jan. 28.
This comes after several reports on the Canadian economy, including consumer inflation, economic growth as measured by GDP and the job market, which have sent mixed signals on the state of the economy.
“A rate hold seems probable but the case for a cut continues to mount. Unemployment is on the uptick and if the job market loses any more steam, it’s at risk of stalling out,” said Shannon Terrell, a financial expert at NerdWallet Canada in a written note.
“Still, a rate hold buys the Bank time to assess the state of the country’s labour while holding steady for everyday borrowers.”
The last interest rate announcement from the Bank was on Dec. 10, 2025, when it held its key policy rate at 2.25 per cent.
Commercial lenders like the big banks will offer products like mortgages to customers at interest rates that build off what is set by the Bank of Canada at these meetings.
If the Bank of Canada changes its key rate, then Canadians who are applying for a mortgage may end up with a different rate from their lender.
If another customer has a variable rate mortgage, then the amount they pay on a regular basis may change depending on the central bank’s policy rate decision.
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