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Canada central bank policy rate rises to 2.5% in 2026-10

The Bank of Canada's policy rate stood at 2.5% in 2026-10, up from 2.25% in 2026-09, placing Canada 2 of 4 countries by change on a year earlier.

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Canada's central bank policy rate was 2.5% in 2026-10, according to the Bank of Canada. That was 0.25 percentage points higher than in 2026-09, when the rate stood at 2.25%, based on Housing Market Group calculations from Bank of Canada figures. The 2026-10 reading is the only change among the recent figures on this sheet. The policy rate affects the cost of borrowing that feeds through to lending conditions in the housing market.

Before the latest reading, the rate had held steady through the summer. The Bank of Canada's figures show a policy rate of 2.25% in 2026-06, 2.25% in 2026-07, 2.25% in 2026-08 and 2.25% in 2026-09. The 2026-10 reading therefore marks a step up after a stretch in which the rate did not move.

Looking back a full year, the Bank of Canada's rate was 2.25% in 2025-10. Housing Market Group's calculations from Bank of Canada figures put the change between 2025-10 and 2026-10 at 0.25 percentage points, the same as the change between 2026-09 and 2026-10. The rate was at the same level in 2025-10 as it was through the middle of 2026, so the annual rise comes entirely from the latest move.

Canada's policy rate in 2026-10 matched Germany's, which was 2.5% according to the Deutsche Bundesbank. Germany's rate rose by 0.5 percentage points between 2025-10 and 2026-10, based on HMG calculations from Deutsche Bundesbank figures, which is a larger annual increase than Canada's. In the United Kingdom, the Bank of England's rate was 3.75% in 2026-10, having fallen by 0.25 percentage points between 2025-10 and 2026-10, according to HMG calculations from Bank of England figures. Malaysia's rate was 2.75% in 2026-10 according to Bank Negara Malaysia, with a change of 0 percentage points between 2025-10 and 2026-10. Indonesia's rate stood at 5.75% in 2026-10, according to Bank Indonesia.

HMG ranked the 4 countries in this sheet by the change in their policy rates between 2025-10 and 2026-10. On that measure, Canada placed 2 of 4 in 2026-10. Germany recorded a larger annual increase, Malaysia's rate was unchanged and the United Kingdom's rate fell over the same period.

The figures show Canada's policy rate moving up in 2026-10 after holding at 2.25% from 2026-06 through 2026-09. In 2026-10, it was level with Germany's rate and below the rates reported for the United Kingdom, Malaysia and Indonesia.

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Analisis orisinal oleh Housing Market Insights. Angka adalah milik para penerbitnya; teksnya milik kami.

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