09/20/2026
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🏦 COULD INTEREST RATES GO UP AGAIN IN CANADA?
After months of the Bank of Canada holding its key interest rate steady, financial markets are suddenly putting greater odds on another RATE HIKE.
The Bank of Canada's policy rate currently sits at 2.25%.
According to The Canadian Press, financial markets are now pricing roughly a 50% chance of an interest rate increase at the Bank's next decision on October 28.
Why the change?
Inflation has remained around 3%, energy prices are elevated and the Bank of Canada has acknowledged that inflation risks have increased.
But a rate hike is FAR from certain.
Economists quoted by The Canadian Press from RBC and Desjardins still expect the Bank of Canada to leave rates unchanged for the remainder of 2026.
For households carrying variable-rate mortgages, HELOCs or other variable-rate debt, this is definitely something to watch.
The next Bank of Canada interest rate announcement is October 28.
💬 CBB Friends: If interest rates started climbing again, how much would it affect your household budget?