Bank of Canada Raises Policy Rate to 2.5%, First Hike Since July 2023

The Bank of Canada raised its policy rate by 25 basis points to 2.5% on Oct. 28, 2026, its first increase since July 2023. Welland Tribune quotes broker Leah Zlatkin estimating about $120 more per month on an $800,000 adjustable-rate mortgage, an illustration rather than a borrower-specific payment. The paper reports that existing fixed-rate borrowers will not see their repayment rate rise. Governor Tiff Macklem left further increases possible.