The Bank of Canada rate pause reached seven consecutive holds on September 2, 2026, with the target for the overnight rate still at 2.25%. The Bank of Canada last changed its policy rate on October 29, 2025. Over those seven announcements, the reasons for holding shifted: early in the pause, the concern was weak growth; by September, the Bank was warning about inflation risks from energy prices and tariffs.

Key Takeaways

• Final rate cuts: The Bank of Canada reduced its policy rate twice in fall 2025, lowering it to 2.50% on September 17 and 2.25% on October 29.

• Extended pause: The Bank then held the policy rate at 2.25% on December 10, 2025, and again on January 28, March 18, April 29, June 10, July 15 and September 2, 2026.

• Changing message: The rate pause began with the Bank describing 2.25% as "about the right level" and ended the summer with warnings about increased upside risks to inflation.

• Housing outlook: The Bank's assessment of Canada's housing market evolved from saying activity "remained weak" in March to reporting "some rebound in housing activity" in September.

• Mortgage rates: While the prime rate at chartered banks has remained 4.45% throughout the pause, five-year Government of Canada bond yields have moved higher, putting upward pressure on fixed mortgage rates.

• What's next: The next scheduled Bank of Canada rate announcements are October 28, 2026 and December 9, 2026.

How the Bank Got to 2.25%

The Bank of Canada lowered its policy rate by 25 basis points on September 17, 2025, to 2.50%, and by another 25 basis points on October 29, 2025, to 2.25%. At the October cut, the Bank said Canada’s economy had contracted by 1.6% in the second quarter of 2025, and the unemployment rate stood at 7.1%. It added that if the economy evolved as projected, the Governing Council saw the rate “at about the right level.” Every decision since has kept it there.

The Rate Pause at a Glance

• October 29, 2025 - Cut to 2.25% - Weak economy from U.S. trade actions; rate seen as about right.

• December 10, 2025 - Hold - Surprisingly strong Q3 growth of 2.6%; unemployment down to 6.5%.

• January 28, 2026 - Hold - Outlook little changed; CUSMA review identified as a key uncertainty.

• March 18, 2026 - Hold - Middle East conflict lifted energy prices; Q4 GDP fell 0.6%. 3.01%

• April 29, 2026 - Hold - Iran war pushed inflation forecasts higher; housing activity remained constrained by affordability.

• June 10, 2026 - Hold - Q1 GDP down 0.1%; CPI reached 2.8% in April.

• July 15, 2026 - Hold - Economic growth resumed; CPI reached 3.2% in May, largely driven by gasoline prices.

• September 2, 2026 - Hold - Q2 GDP rose 3.3%; new U.S. tariffs were introduced; upside inflation risks increased.

Sources: Bank of Canada policy rate history; Bank of Canada announcements as archived in REMAX Canada’s rate announcement recap

Hold by Hold: What the Bank Said

December 10, 2025: First Hold

Canada’s economy grew by a surprisingly strong 2.6% in the third quarter, though the Bank noted that final domestic demand was flat. The unemployment rate fell to 6.5% in November, and CPI inflation slowed to 2.2% in October. The Bank repeated that 2.25% was about the right level if the economy tracked its October forecast.

January 28, 2026: Second Hold

With a new Monetary Policy Report, the Bank projected growth of 1.1% in 2026 and 1.5% in 2027. CPI inflation was 2.4% in December, and the Bank’s preferred core measures had eased to around 2.5%. It named the upcoming review of the Canada-US-Mexico Agreement as a key source of uncertainty.

March 18, 2026: Third Hold

The conflict in the Middle East pushed up oil and natural gas prices, and global bond yields rose. GDP contracted by 0.6% in the fourth quarter of 2025, and the Bank said housing markets remained weak. CPI inflation had eased to 1.8% in February, but the Bank expected gasoline prices to push it higher in the coming months.

April 29, 2026: Fourth Hold

The April Monetary Policy Report revised inflation projections up because of the jump in energy prices. The Bank said housing activity declined in the fourth quarter and was held back by slow population growth, economic uncertainty, and ongoing affordability issues. It also said it would “not let higher energy prices become persistent inflation.”

June 10, 2026: Fifth Hold

GDP edged down by 0.1% in the first quarter, weaker than expected, and housing activity declined. CPI inflation rose to 2.8% in April, and oil prices were roughly $10 a barrel above the Bank’s April assumptions. The unemployment rate was 6.6% in May.

July 15, 2026: Sixth Hold

The Bank estimated second-quarter growth at 2.5% and said sources of growth appeared to be broadening. CPI inflation had risen to 3.2% in May, mainly because of gasoline, while inflation excluding gasoline was 2.2%. The Bank described housing activity as weak but looking to be stabilizing.

September 2, 2026: Seventh Hold

GDP grew by 3.3% in the second quarter, and the unemployment rate edged down to 6.4% in July. The Bank reported “some rebound in housing activity” after several weak quarters. It also noted that trade talks between Canada and the United States had broken down, with new US tariffs and Canadian countermeasures announced. The September 2 press release has the full statement.

What the Pause Has Meant for Mortgage Holders

For variable-rate borrowers, the pause has meant stability. The prime rate at chartered banks has been 4.45% since the October 2025 cut, according to Bank of Canada data, so payments tied to prime have not moved.

For fixed-rate shoppers, the picture is different. The five-year Government of Canada bond yield rose from 2.73% on the day of the October 2025 cut to 3.42% on September 2, 2026. Fixed mortgage rates are influenced more by bond yields than by the policy rate, which is why CREA’s September 8 commentary said borrowers are already facing higher fixed rates. The REMAX guide to mortgages and interest rates in Canada explains how each rate type responds.

What to Watch at the Next Announcements

The Bank has two scheduled announcements left in 2026: October 28, with a new Monetary Policy Report, and December 9. CREA’s reading after the September decision is that a potential hike is back on the table for one of those meetings, though not a done deal. Three things will affect the next announcement, based on what the Bank said in September:

• Whether high gasoline prices start to spread to the prices of other goods and services

• How the new US tariffs and Canadian counter-tariffs affect growth, hiring and consumer prices

• Whether the second quarter rebound in the economy, including housing, holds up

Frequently Asked Questions

How Many Times Has the Bank of Canada Held Rates in a Row?

The Bank of Canada has held its policy rate at 2.25% for seven consecutive scheduled rate announcements, maintaining the same setting throughout 2026 to date.

When Did the Bank of Canada Last Change Its Interest Rate?

The Bank last changed its policy rate on October 29, 2025, when it lowered the target for the overnight rate by 25 basis points to 2.25%.

Why Has the Bank of Canada Held at 2.25%?

At the beginning of the pause, the Bank described 2.25% as about the right level to keep inflation near its 2% target while supporting an economy affected by U.S. tariffs. Throughout 2026, policymakers balanced slower economic growth against inflation pressures tied to energy prices. In September 2026, the Bank said the economy and inflation were evolving broadly as expected but noted that upside risks to inflation had increased.

Has the Prime Rate Changed During the Pause?

No. The prime rate at Canada's chartered banks has remained 4.45% since the Bank of Canada's October 2025 rate cut, providing stability for variable-rate borrowers throughout the pause.

When Is the Next Bank of Canada Announcement?

The next scheduled Bank of Canada rate announcement is October 28, 2026, accompanied by a new Monetary Policy Report containing updated growth and inflation forecasts. The final announcement of 2026 is scheduled for December 9, 2026, while the first announcement of 2027 is scheduled for January 27, 2027.

Courtesy REMAX LLC

Consistent with trends throughout most of 2026, both sales activity and the number of new listings coming onto the market have continued to trend down compared with 2025 levels. In August, sales in Calgary were 1,660 units, down 16 per cent compared with last year, while new listings fell by nearly 10 per cent to 3,141 units.

The pullback in sales has not occurred across all price ranges, as homes priced over $1,000,000 have recorded gains over last year. These gains have mostly been driven by detached and semi-detached homes and are also consistent with where most of the supply growth has occurred.

“While sales growth in the upper end of the market was possible thanks to improved supply choice, it also reflects longer-term confidence in our market, as some buyers are not shying away from taking advantage of the available supply,” said Ann-Marie Lurie, Chief Economist at the Calgary Real Estate Board (CREB®). “Meanwhile, we have not seen the same pickup in activity in the lower price ranges, as favourable rental conditions are slowing the transition to ownership.”

Inventory levels in August eased compared with the previous month and the same period last year, at 6,509 units. However, given the pullback in sales, the months of supply pushed up to nearly four months. Also consistent with trends throughout this year, conditions vary significantly by property type, with nearly six months of supply for apartment-style homes compared with over three months of supply for lower-density detached homes.

The relatively balanced conditions in the detached and semi-detached sector have prevented any significant shifts in prices compared with the steady price declines occurring in the oversupplied higher-density segments of the market. As of August, the total residential benchmark price was $569,800, similar to the previous month and one per cent lower than 2025 levels.

Detached

Gains in higher-priced sales were not enough to offset the pullbacks occurring for homes priced below $1,000,000, as sales fell by 12 per cent to 875 units. At the same time, new listings trended down compared with both July and August 2025 levels, reaching 1,635 units. The steeper decline in sales compared with inventory levels was enough to support a modest monthly gain in inventory levels and drove up the months of supply to over three months. Market balance varies significantly based on price range and location. The months of supply remain below three months in the North West, West, South and South East districts, and above four months in the North and North East districts. The wide range of market balance is also reflected in pricing. Year-over-year gains of over two per cent have occurred in the West and City Centre districts. Meanwhile, price declines were the steepest in the North East at over six per cent. Overall, the benchmark price in August was $744,300, similar to July and down by one per cent compared with last year.

Semi-Detached

Easing sales in August were enough to push year-to-date sales down to 1,516 units, over two per cent lower than last year’s levels. The easing of August sales was not matched by new listings, causing the sales-to-new-listings ratio to fall to 56 percent. While inventories eased slightly compared with the previous month, they remain nearly five per cent higher than last year. The steeper monthly pullback in sales compared with inventories was enough to push the months of supply above three months, the first time this has happened since January. Despite the shift, conditions remain relatively balanced, and prices have been relatively stable. As of August, the unadjusted benchmark price was $690,500, similar to the previous month and nearly one per cent higher than last year's levels. Price gains in the City Centre, North West and West districts offset pullbacks in other areas, contributing to the annual gain.

Row

Sales continued to ease in August compared with last year, contributing to the year-to-date pullback of 15 per cent. Additional new-home supply, along with more rental product availability, has contributed to some of the pullback in sales activity. Meanwhile, the pullback in new listings has helped prevent any further gains in inventory levels, and the months of supply remained near four months for the second month in a row. Like other sectors, conditions vary depending on location. The months of supply pushed above four months in the City Centre, North East and North districts, while remaining near three months in the West district. Prices have been easing across all districts in the city. The range of decline varied from over 12 percent in the North East to just over one per cent in the North West district. As of August, the benchmark price was $415,200, down nearly one per cent from July and five per cent lower than levels reported last year at this time.

Apartment Condominium

Apartment-style homes continue to face the most oversupply in the market, with nearly six months of resale supply. More rental supply is weighing on ownership demand from both first-time buyers and investors, which is slowing sales activity while supply levels remain elevated. In August, sales activity continued to fall, contributing to the year-to-date decline of 26 percent. New listings have also been declining enough to prevent any further inventory gain, but not enough to help the market shift away from buyer-market conditions. Persistently high supply levels relative to demand have weighed on apartment-style prices for the past two years. As of August, the unadjusted benchmark price was $295,400, nearly one per cent lower than the previous month and eight per cent lower than 2025 levels. Prices peaked in August 2024 at $341,300 and currently sit nearly 13 percent lower than the peak price.

REGIONAL MARKET FACTS

Airdrie

Sales continued to trend down in August, contributing to the year-to-date decline of 13 percent. Easing sales have also been met with a seven per cent pullback in new listings over the same period. Throughout most of the year, inventory levels have generally trended higher than last year’s levels and longer-term trends. Over the past few months, we have started to see the pullback in new listings relative to sales cause the sales-to-new-listings ratio to rise, and this has helped prevent any further inventory gains and kept the months of supply below four months. Nonetheless, pressure from competing markets continues to weigh on resale prices. As of August, the unadjusted total residential benchmark price was $508,800, down one per cent from July and over four per cent compared with last year at this time. Steeper price declines are occurring for higher-density apartment-style homes.

Cochrane

Sales improved in August, contributing to the year-to-date gain of over five per cent. Much of the gain in sales has been driven by semi-detached activity. New listings also improved in August compared with last year. The 148 new listings and 94 sales caused the sales-to-new-listings ratio to push above 60 per cent, and inventories edged down compared with the previous month. The boost in sales in August compared with inventory levels caused the months of supply to drop back down to just over three months. Nonetheless, prices still trended down in August. The unadjusted total residential benchmark price eased by nearly one per cent compared with July and is two per cent lower than levels reported last year.

Okotoks

Further declines in new listings likely limited sales activity in August, as the sales-to-new-listings ratio remained elevated at 81 percent. This contributed to the monthly pullback in inventories, keeping conditions relatively tight with just over two months of supply. Okotoks has struggled with lower-than-average supply levels since 2021, but additional supply choice in competing markets is helping prevent further upward pressure on prices. As of August, the unadjusted total residential benchmark price was $608,400, over one per cent lower compared with July and nearly two per cent lower than last year's levels.

Chestermere

The pullback in sales continues to outpace the declines in new listings, as the sales-to-new-listings ratio dropped below 30 percent in August. This has contributed to elevated inventory levels. While Chestermere is growing, the higher inventory, combined with the pullback in sales, has caused the months of supply to rise, reaching nine months in August. This has continued to weigh on prices, which trended down in August compared with July and currently sit over one per cent lower than 2025 levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Courtesy CREB.

The Bank of Canada has held its target for the overnight rate at 2.25%, which impacts Canadian mortgage rates, among other things. The decision marks the seventh consecutive scheduled announcement in which the policy rate has not changed. The Bank pointed to a broadening economic recovery while flagging inflation risks tied to energy prices and to new tariffs between Canada and the United States. The next scheduled interest rate announcement is October 28, 2026.

GDP was up by 3.3% following weakness in the first quarter, the Bank noted in its announcement, with growth visible in consumption, and “some rebound in housing activity.” CPI inflation hovered around 3%, largely driven by higher gasoline prices tied to the ongoing Middle East conflict. Excluding gasoline, inflation stood at 2.2%, with core inflation measures remaining close to 2%.

The Bank held the policy rate steady as the economy and inflation continue to evolve broadly in line with its July forecast, while noting increased risks to inflation and continued uncertainty surrounding economic growth.

Target for the overnight rate

2.25%

Unchanged on September 2, 2026. Seventh consecutive hold.

Source: Bank of Canada interest rate announcement, September 2, 2026

Key Takeaways

• The Bank of Canada held its target for the overnight rate at 2.25% on September 2, 2026, marking its seventh consecutive rate announcement without a change.

• Canada’s economy strengthened in the second quarter, with GDP increasing by 3.3% following weak growth in the first quarter.

• Housing activity showed signs of a rebound after several weak quarters.

• CPI inflation has been around 3%, largely due to higher gasoline prices. Excluding gasoline, inflation was 2.2% in July, while measures of core inflation remained close to 2%.

• The Bank is watching inflation risks associated with high energy prices, U.S. tariffs and Canadian counter-tariffs, while also assessing whether Canada’s economic recovery can be sustained.

• The next Bank of Canada interest rate announcement is scheduled for October 28, 2026.

Bank of Canada’s 2026 Policy Interest Rate Announcement Schedule

The Bank of Canada announces its decision on the overnight rate target eight times a year, typically on a Wednesday. The schedule for 2026 is as follows:

• Wednesday, January 28

• Wednesday, March 18

• Wednesday, April 29

• Wednesday, June 10

• Wednesday, July 15

• Wednesday, September 2

• Wednesday, October 28

• Wednesday, December 9

Read the full interest rate announcement below:

The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.

The continuing conflict in the Middle East is keeping energy prices high. As well, new US tariffs and Canadian counter-measures have been announced following the breakdown of trade talks between Canada and the United States. Both situations remain fluid.

In the United States, economic growth continues to be solid, driven by consumer spending and AI-related investment. Growth in the euro area was stronger than expected in the second quarter, while China’s economy slowed. Overall, the global economy has shown resilience in the face of geopolitical headwinds, with growth broadly consistent with the July Monetary Policy Report (MPR) projection. With still-high oil prices and elevated margins for refined energy products, inflation in most countries remains high.

Financial conditions have tightened since July. Long-term bond yields have moved up globally, including in Canada. The Canadian dollar has appreciated slightly on US-dollar weakness.

As expected, Canadian economic activity strengthened in the second quarter, with GDP up by 3.3%, following very weak growth in the first quarter. While some of the recent strength reflected temporary factors, the pick-up in activity was broad-based. Consumption showed solid gains. Following several weak quarters, there was some rebound in housing activity. Exports and business investment were up sharply. Labour market conditions have improved in recent months, with the unemployment rate edging down to 6.4% in July. Still, demand for labour remains subdued and indicators point to continued excess supply in the economy.

Overall, recent data reaffirm Governing Council’s view of a broadening recovery in Canada’s economy. However, uncertainty is high and new US tariffs and threats of further action pose risks to the sustainability of the recovery.

CPI inflation has been hovering around 3% in recent months, mainly because of persistently higher gasoline prices. So far, there has been little evidence of higher energy prices spreading to other components of inflation: excluding gasoline, inflation was 2.2% and measures of core inflation remained close to 2% in July. However, with the Middle East conflict still ongoing and little progress reopening the Strait of Hormuz, upside risks to the Bank’s inflation forecast have increased. The longer that high oil prices and elevated refinery margins persist, the greater the risk of spillover to the prices of other goods and services. New US tariffs and Canadian counter-tariffs will also raise costs for some businesses and could feed into consumer prices over time.

With the economy and inflation evolving broadly as forecast in the July MPR, Governing Council agreed to leave the policy rate unchanged. However, the upside risks to inflation have increased, while new tariffs make growth prospects more uncertain. Governing Council will assess the sustainability of the economic rebound and the outlook for inflation, and is prepared to adjust monetary policy as needed. The Bank remains committed to maintaining Canadians’ confidence in price stability through this period of global upheaval.

FAQs

What is the Bank of Canada interest rate today?

As of September 2, 2026, the Bank of Canada’s target for the overnight rate is 2.25%. The Bank Rate is 2.5%, and the deposit rate is 2.20%.

Did the Bank of Canada raise interest rates in September 2026?

No. The Bank of Canada held its policy interest rate at 2.25% on September 2, 2026. This was the seventh consecutive scheduled interest rate announcement in which the overnight rate remained at 2.25%.

When is the next Bank of Canada interest rate announcement?

The next Bank of Canada interest rate announcement is scheduled for October 28, 2026. The Bank will also release its next Monetary Policy Report on that date.

Why did the Bank of Canada hold interest rates?

The Bank held its policy rate because economic growth and inflation have evolved broadly in line with its July forecast. However, it noted increased upside risks to inflation from high energy prices and tariffs, as well as uncertainty about whether Canada’s economic rebound will continue.

How does the Bank of Canada interest rate affect mortgage rates?

The Bank of Canada’s policy rate can influence borrowing costs throughout the economy. Changes in the overnight rate generally have a more direct impact on variable mortgage rates, while fixed mortgage rates are influenced more heavily by bond yields and broader financial market conditions.

Does a Bank of Canada rate hold mean mortgage rates will stay the same?

Not necessarily. A policy rate hold means the Bank of Canada has not changed its overnight rate, but mortgage rates can still move. Fixed mortgage rates can change as bond yields and financial market conditions change, while lenders can also adjust the rates they offer borrowers.

Will the Bank of Canada cut interest rates in 2026?

Future interest rate decisions will depend on economic conditions and the outlook for inflation. The Bank has said it will assess the sustainability of Canada’s economic rebound and inflation outlook and is prepared to adjust monetary policy as needed. Its remaining scheduled rate announcements in 2026 are October 28 and December 9.

What does the Bank of Canada rate hold mean for homebuyers?

A rate hold provides some short-term stability in the Bank of Canada’s policy rate, but it does not guarantee that all mortgage rates will remain unchanged. Homebuyers should consider the mortgage rate available to them, their down payment, monthly payment and overall affordability when determining their home-buying budget.