Bank of Canada Maintains Policy Rate at 2¼% | Jan 28, 2026

by Susan Moffat

The Bank of Canada has announced it is holding its key overnight policy rate at 2.25% as of January 28, 2026, with inflation expected to stay close to the 2% target over the next couple of years. Global growth is projected to remain modest around 3%, and here at home the Bank sees Canadian growth of about 1.1% in 2026 and 1.5% in 2027 as we continue to adjust to US tariffs and a changing trade landscape.

What You Can Do Next

If you are a homeowner, buyer, or seller, this is a good time to revisit your plans:

Review your current mortgage: Know whether you are in a fixed or variable product and how future rate changes could affect your payments.
Get pre-approved or updated: If you are thinking about buying, an updated pre-approval can help you understand your true budget in today’s rate environment.
Talk strategy for 2026: If you plan to move, refinance, or invest next year, use this period of relative stability to map out your steps.

Looking Ahead

The next scheduled date for announcing the overnight rate target is March 18, 2026. The Bank’s next MPR will be released on April 29, 2026.

Final Thoughts

As a real estate professional, this type of announcement is a reminder that your real estate decisions are closely connected to the broader economic landscape. If you want to understand how this interest rate decision affects your specific situation—or the local housing market in your area—reach out to discuss your goals and options.

Disclaimer: This blog is for informational purposes only and does not constitute financial or legal advice. Always consult with qualified professionals for guidance specific to your circumstances.

Read the Press Release.

Whether you’re a homeowner, prospective buyer, or real estate investor, understanding these market changes is crucial. As your trusted REALTOR®, I’m here to help you navigate these shifts and make informed decisions! Call, text, email, or DM me to chat about how this announcement affects your real estate plans!

susanmoffat.ca

519.377.5154
susan.moffat@c21.ca