The Bank of Canada held its overnight rate at 2.25% on April 29, 2026, matching the consensus call from the Big Six bank economics teams going into the meeting. This was the fifth consecutive hold at 2.25%, a level the Bank has held since October 2025. The next scheduled decision is June 10, 2026.

Why the Bank Held

The Monetary Policy Report released alongside the decision pointed to two offsetting pressures. Inflation had climbed to 2.4% in March, largely on higher gasoline prices tied to Middle East conflict, and the Bank's own forecast expected it to run closer to 3% through April before easing back toward 2% in early 2027. At the same time, GDP growth is projected at a moderate 1.2% for 2026 as the economy continues adjusting to US tariffs — not the kind of overheating that would justify a hike, but not weak enough to justify a cut either.

Governing Council's language was explicit about looking through the near-term inflation bump from oil prices rather than reacting to it, while signalling it would respond if higher energy costs started feeding into broader, persistent inflation. That's a hold with a mild hawkish lean — consistent with the Big Six consensus and a marked shift from the aggressive cutting cycle of 2024–2025.

What It Means For Your Mortgage

With the overnight rate unchanged, prime sits at 4.45% at the major banks, and variable mortgage and HELOC payments haven't moved. Fixed mortgage rates aren't set by the BoC directly — they track Government of Canada bond yields, so they can (and did) move independently of this decision. Five-year fixed has generally sat in the 4.04–4.29% range on insured mortgages and 4.49–4.79% on uninsured over the past few weeks.

If you're up for renewal, the variable-vs-fixed math right now is dominated by the bond market, not the overnight rate — and with five consecutive holds, that's unlikely to change again before June 10. Run both scenarios in our mortgage calculator with your actual balance and amortization to see the monthly difference in dollars, not just percentage points.

What It Means For Your Savings

HISA and GIC rates have been broadly stable through the holding streak rather than sliding, since there's been no BoC move to reprice against. See current GIC rates and HISA rates side by side for today's posted numbers across the major providers before deciding whether to stay liquid or lock in a term.

What's Next

The Bank's next scheduled decision is June 10, 2026, followed by July 29. With five holds in a row, most bank economists expect the streak to continue absent a clear break in either direction from the inflation or growth data. Check our mortgage calculator to see how a future cut or hike would change your specific payment.