No Change to the Interest Rate for January 2026

Bank of Canada announcement

The Bank of Canada has announced no change to its overnight rate — which means the Prime Rate remains the same.

What’s happening in the economy?

The global economy is relatively stable, but uncertainty is still present — particularly around U.S. trade policy. The U.S. economy continues to perform stronger than expected, while growth in other regions is more uneven. Ongoing trade restrictions and uncertainty are still affecting Canada’s economic momentum.

Inflation rose briefly due to last year’s GST holiday, but core inflation is now easing and remains close to the Bank of Canada’s 2% target. With inflation cooling and the economy still adjusting, the Bank believes holding rates steady is the right move for now, while continuing to monitor risks closely.

Bank of Canada Statement:
“Governing Council judges the current policy rate remains appropriate… however, uncertainty is heightened and we are monitoring risks closely.”

What this means for you

Variable-rate mortgage holders & HELOC clients
Your rate stays the same.

Fixed-rate mortgage holders
Your mortgage rate does not change. Fixed rates are tied to the bond market, which can move based on economic news, but changes are not immediate.
Note: Fixed rates have been trending upward recently.

If you'd like to review your mortgage strategy or discuss whether fixed or variable makes sense for your situation, I’m happy to help.

The next Bank of Canada rate announcement is scheduled for March 18, 2026. We’ll be watching closely.