The Bank of Canada's next interest rate decision and announcement is due on Wednesday, June 4, 2025 at 13:45 UTC.
The Bank of Canada (BoC) announces its "key" interest rate (the overnight rate) and any decisions related to its monetary policy on eight fixed dates per year.
The BoC's key interest rate was formerly the Bank Rate. While the Bank Rate still exists, and is now set at the upper limit of the operating band, different methods have been used to determine and set it in the past.
What is the current BoC interest rate?
The Bank of Canada's current target for the overnight rate (the policy interest rate) is set at 2.75%. This target rate has been in place since March, 2025, following a 25 basis point reduction from 3.00%.
For the latest Canadian Overnight Repo Rate Average (CORRA), please see the Bank of Canada's website.
What date is the next Bank of Canada rate announcement?
The Bank of Canada's next interest rate announcement is due on Wednesday, June 4th.
See below for all the BoC's scheduled rate announcements in 2025:
- Wednesday, 29 January 2025
- Wednesday, 12 March 2025
- Wednesday, 16 April 2025
- Wednesday, 4 June 2025
- Wednesday, 30 July 2025
- Wednesday, 17 September 2025
- Wednesday, 29 October 2025
- Wednesday, 10 December 2025
These scheduled announcements typically occur every six to seven weeks. During each meeting, the BoC's Governing Council evaluates economic conditions, inflation trends, and other financial indicators to determine whether to raise, lower, or maintain the benchmark overnight rate.
What time is Bank of Canada interest rate announcement?
Eight scheduled times a year, the Bank of Canada announces its overnight rate target at 09:45 ET (13:45 UTC).
How often does the Bank of Canada review rates?
The Bank of Canada (BoC) reviews its interest rates eight times per year on a predetermined schedule. These announcements occur approximately every six to seven weeks.
However, The BoC can also hold emergency reviews to adjust interest rates outside the normal schedule in response to unexpected economic shocks, such as the COVID-19 pandemic in 2020. During each review, the BoC's Governing Council assesses economic conditions, inflation trends, and financial stability before deciding whether to raise, lower, or maintain the target for the overnight rate.
BoC interest rate history
See below for historical interest rate data, showing how the BoC's policy interest rate has changed over recent years.
*As of 2021, a change takes effect the day after its announcement.
What is the BoC interest rate forecast?
Ongoing U.S. tariffs and a sharp decline in Canadian employment have increased economic uncertainty and weakened business confidence. Given the current economic challenges, financial markets anticipate further monetary easing:
- Market expectations: Traders in overnight swaps foresee the BoC reducing the key policy rate by an additional 75 basis points within the year, potentially bringing it down to 2.00%.
- Analyst projections: Some economists predict that the BoC may implement further rate cuts, with forecasts suggesting a policy rate of 2.25% by the end of 2025.
While the BoC aims to support economic growth through potential rate cuts, it remains cautious of inflationary pressures arising from increased import costs due to tariffs. The central bank has emphasised a balanced approach, weighing the risks of higher inflation against the need to stimulate the economy.
What date is the next BoC interest rate decision?
The next interest rate decision by the BoC is scheduled for 2025-06-04.
BoC interest rate dates
What is the prediction for the Bank of Canada rate?
In regards to rate predictions, the Bank of Canada (BoC) has indicated a cautious stance on future rate adjustments, highlighting the importance of balancing the effects of tariffs on inflation and economic growth.
In a statement on its website, the BoC said "the Bank is committed to maintaining price stability for Canadians", however monetary policy cannot offset the impacts of a trade war. With some economists believing that further rates could be dependent on the trade war and how consumer prices react to it.
The BoC has adopted a data-dependent approach, emphasising the need to balance inflationary pressures from rising import costs due to U.S. tariffs against the risks of slowing economic growth. Governor Tiff Macklem highlighted the uncertainty in the economic outlook, stating that the Bank is prepared to adjust its policy stance as new data emerges.
In summary, while the BoC has paused its rate-cutting cycle, prevailing economic indicators and market sentiments suggest a likelihood of further reductions in the policy rate in 2025, contingent upon evolving economic conditions and inflationary trends.
Will the BoC continue to cut rates in 2025?
Bank of Canada Governor, Tiff Macklem, has stated that senior officials will "proceed carefully with any further changes to our policy rate”, indictaing that while the BoC has proactively reduced interest rates to mitigate the impact of trade-related uncertainties, future rate cuts and monetary policy decisions will be carefully evaluated in response to evolving economic conditions.
However, following the BoC's decision to maintain a rate of 2.75% at their April 16 meeting, Governor Tiff Macklem stated that the Bank, which started cutting rates last June, chose to hold interest rates steady to gather more insight into the effects of tariffs and will move forward with caution.
"A lot has happened since our March decision five weeks ago, but the future is really no clearer...That means being less forward-looking than usual until the situation is clearer."
Nonetheless, financial markets are pricing in a 66% probability of a rate cut to 2.5% at the BoC's next meeting on June 4, 2025
Should we expect rate increases in 2025?
Analysis suggests that the Bank of Canada is likely to implement further interest rate reductions in 2025, influenced by ongoing trade uncertainties, particularly potential U.S. tariffs on Canadian goods, which pose risks to Canada's economic growth. Therefore it is likely there will not be rate increases in 2025.
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