Bank of Canada interest rate announcement nears as economists expect a hike
Posted October 28, 2026 8:28 am
1 min read
To hike or not to hike? Bank of Canada interest rate decision coming Wednesday
The Bank of Canada is expected to make an interest rate announcement Wednesday, with many economists predicting a hike for the first time in three years.
The central bank is facing pressure to raise interest rates as the Iran war and other geopolitical conflicts result in higher prices for oil and gas, which is expected to lead to higher prices for goods and services beyond the gas pump.
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Financial markets and a Reuters poll of economists are betting that the central bank will deliver a quarter-point hike to its policy rate, the first increase in the key lending rate since July 2023.
The floor for borrowing rates set by the Bank of Canada has been 2.25 per cent since October 2025, when rates were cut from 2.5 per cent.
Alongside the rate decision, the Bank of Canada will also release updated forecasts for inflation and economic growth.
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