Bank of Canada Raises Policy Rate by 25 Basis Points to 2.5%

Summary of the Announcement

The Bank of Canada announced that it has increased its target for the overnight rate by 25 basis points, bringing it to 2.5%. The announcement was published on 2026-10-28.

Related Rates

Alongside the change in the target for the overnight rate, the central bank set the Bank Rate at 2.75% and the deposit rate at 2.45%. These figures are the ones stated in the official announcement.

The decision is a monetary policy action by the central bank, and policy rate changes are closely followed by participants in the foreign exchange market because they relate to the Canadian dollar. This article is based only on the information in the official announcement and does not cover details beyond it.

Notes for EA trading

Monetary policy announcements can lead to sharp price movements and periods of high volatility. Spreads may widen around the time of a release, which can affect how automated strategies behave. Some traders consider pausing their EAs or reviewing their settings before and after major central bank announcements.