The Bank of Canada raised its key overnight rate by 25 basis points to 2.50% on October 28, 2026—the first increase since mid-2023 and its first policy change in nearly a year. This move aims to counter rising inflation risks, particularly from higher energy prices that pushed headline CPI to 3.1% in September, even as core measures remained subdued. The hike is expected to lift borrowing costs, including mortgages, and could moderate economic growth while helping prevent energy-driven price pressures from spreading more broadly.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

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☎️ 416-890-1365September 2026 Bank of Canada Update