The Bank of Canada announced on January 28th that they will hold their policy interest rate, keeping it at 2.25%.

Key Takeaways

  • The Bank of Canada has held their policy interest rate, which keeps it at 2.25% as of their latest interest rate announcement.
  • Talk to an experienced mortgage advisor to understand the announcement’s impact on your mortgage payment or upcoming renewal

Why did the Bank of Canada hold interest rates? 

Commentary from Perch’s CEO and Principal Mortgage Broker, Alex Leduc:

The latest Bank of Canada interest rate announcement occurred on January 28, 2026. GDP remains weak, uncertainty with the US is worsening, core inflation remaining in the high 2s and a stable unemployment rate all support the decision to hold rates.

What does this mean for my mortgage with Perch? 

  • For variable rate mortgages (meaning your payments don’t fluctuate as prime rates change): Your existing mortgage payments will remain unchanged. Use our Mortgage Renewal Calculator to get an estimation of what your expected rate and payment will be at your maturity date. If the payment isn’t manageable, connect with your advisor well in advance to look at all options.
  • For adjustable rate mortgages (meaning your payments fluctuate as prime rates change): Your payments will remain unchanged for now and the current outlook no further rate cuts from the Bank of Canada throughout 2026.

In the chart below, you can see how our 5-year variable rate forecast has changed over time based on the Bank of Canada’s interest rate announcements. (Like what you see? Sign up to get free, personalized mortgage insights and our monthly mortgage outlook!)

The market anticipates no further cuts to the Prime rate, and we may see our first 0.25% hike by the end of 2026. Rates are expected to stabilize roughly 1% higher over the next 5 years at a 0.25%/year pace.

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What is the Bank of Canada interest rate today?

The current Bank of Canada interest rate is 2.25%.

When is the next Bank of Canada interest rate announcement?

The next scheduled Bank of Canada interest rate announcement is Wednesday, March 18, 2026 at 9:45 AM ET.

What are the interest rate announcement dates in 2026?

There are a total of 8 Bank of Canada interest rate announcements each year. The dates for 2026 are as follows:

  • Wednesday, January 28, 2026
  • Wednesday, March 18, 2026
  • Wednesday, April 29, 2026
  • Wednesday, June 10, 2026
  • Wednesday, July 15, 2026
  • Wednesday, September 2, 2026
  • Wednesday, October 28, 2026
  • Wednesday, December 9, 2026

(Source: Bank of Canada)

The Bank of Canada typically makes their interest announcement at 9:45 AM Eastern Time.

Here’s what else we’re reading:

December Mortgage Outlook  (4 min read time)

Fixed or Variable? How to choose the right mortgage for you (4 min read time)

Mortgage switch vs mortgage renewal (4 min read time)

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