Bank of Canada Interest Rate Update — November 2, 2025

November 2, 2025 | Posted by: Yelena Markus

Bank of Canada Interest Rate Update — November 2, 2025

Current Policy Interest Rate: 2.25%

If you’re a homeowner, future buyer, or simply keeping an eye on Canada’s housing market, you’ve likely heard about the Bank of Canada’s interest rate announcements. These updates have a major impact on mortgage rates, borrowing power, and overall housing affordability across the country.

This guide by Yelena Markus – Mortgage Broker breaks down how the Bank of Canada’s rate decisions work, why they matter, and what to expect for the rest of 2025.

???? Key Takeaways

• The Bank of Canada (BoC) sets the target overnight rate, often called the policy interest rate.

• This benchmark influences every lending rate in Canada, including variable mortgage rates.

• The BoC makes official rate announcements eight times per year on a fixed schedule.

Understanding the Bank of Canada’s Rate Announcements

The Bank of Canada manages the country’s monetary policy. One of its key responsibilities is setting the policy interest rate, which determines short-term lending costs for financial institutions.

When the BoC adjusts this rate, it directly affects bank prime rates, which in turn impact variable and adjustable mortgage rates. Every announcement signals how the central bank views the economy’s strength, inflation trends, and overall stability.

2025 Bank of Canada Interest Rate Announcement Schedule

The Bank of Canada follows a fixed announcement calendar each year. Here are the key 2025 dates:

2025 Schedule:

• January 29

• March 12

• April 16

• June 4

• July 30

• September 17

• October 29

• December 10

Where Rates Stand — November 2025

The Bank of Canada’s latest decision on October 29, 2025, lowered the policy interest rate to 2.25%, marking another step in its monetary easing cycle.

This rate cut reflects slower economic growth and inflation nearing the 2% target. Canada’s GDP fell during Q2 due to weaker exports and trade uncertainty. Employment growth also softened, with job losses concentrated in trade-sensitive industries.

The Governing Council stated that maintaining the rate at 2.25% should help stabilize inflation and support the economy through this adjustment period. However, the Bank remains ready to act if conditions change.

Forecast for December 2025

On October 29, the BoC lowered its overnight rate by 25 basis points, bringing the rate down to 2.25%. This move reduced most mortgage lenders’ prime rate to 4.45%.

According to Yelena Markus – Mortgage Broker, current forecasts suggest no additional cuts before year-end, as this level should keep inflation within target.

Canada’s economy remains under pressure:

• GDP contracted 1.6% in Q2.

• Unemployment held at 7.1%.

• Inflation eased to 2.4% in September.

Governor Tiff Macklem emphasized that if inflation and growth evolve as expected, the current rate level is “about right” to guide the economy through this phase.

Market analysts are now pricing a 91% probability that the rate will hold steady at 2.25% during the December 10 announcement.

Will Rates Rise Again in 2025?

A rate increase appears unlikely in 2025. Most economists expect the Bank of Canada to maintain or slightly lower rates through the year, depending on how inflation, employment, and GDP data evolve.

For homebuyers, this environment continues to offer favourable borrowing conditions compared to the higher-rate years of 2023–2024.

Historical Bank of Canada Interest Rate Changes

For more details, you can consult the Bank of Canada’s Historical Rate Database, which lists every adjustment from the past decade.

Monetary Policy Reports

Each time the Bank announces a rate decision, it also publishes a Monetary Policy Report (MPR). These reports outline the reasoning behind the decision, including insights into:

• Canadian and global economic performance

• Inflation trends

• Employment and consumer spending

• Housing and investment outlook

Final Thoughts

The Bank of Canada’s rate decisions shape the cost of borrowing, directly affecting homeowners and future buyers. Staying informed helps you make smarter real estate and mortgage decisions.

If you want expert guidance tailored to your financial situation, connect with Yelena Markus – Mortgage Broker. With deep market knowledge and access to top lenders, Yelena can help you navigate rate changes, compare options, and secure the best mortgage solution for your goals.

Contact Yelena Markus – Mortgage Broker today for personalized mortgage advice and a custom rate strategy.

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