The Bank of Canada's target overnight rate has swung dramatically since 2020 — from an emergency low of 0.25%, up to a peak of 5.00%, and back down to 2.25% today. See the full interactive chart on our rate tracker.
The Bank of Canada's target overnight rate is 2.25% today. Since 2020 it swung from an emergency low of 0.25%, up to a peak of 5.00% in 2023 to fight inflation, then down to 2.25% after a series of cuts ending with the last cut on October 29, 2025.
Few periods in Canadian history saw the policy rate move this much this fast:
| Period | Rate | What happened |
|---|---|---|
| March 2020 | 0.25% | Emergency cuts as COVID-19 hit |
| 2020–2021 | 0.25% | Held near zero to support the economy |
| 2022 | 0.25% → 4.25% | Rapid hikes to fight inflation |
| Mid-2023 | 5.00% | Peak of the tightening cycle |
| 2024 | 5.00% → 3.25% | Cutting cycle begins |
| 2025–2026 | 3.25% → 2.25% | Gradual cuts, then a hold |
The Bank slashed rates in 2020 to cushion the pandemic shock. When inflation surged in 2022 to multi-decade highs, it raised rates at the fastest pace in a generation, reaching 5.00% in mid-2023. As inflation cooled toward the 2% target, the Bank began cutting in 2024, easing the rate down to 2.25% by 2026, where it has held.
Future moves depend on inflation, jobs and growth. Track the next decision and the data that drives it on the rate decision schedule and economic calendar. Historical figures here are for information only, not advice.
The policy rate peaked at 5.00% in mid-2023 during the fight against inflation.
0.25% — an emergency low held from March 2020 through early 2022.
2.25%, held as of June 2026 after a cutting cycle from the 5.00% peak.