Quick answer
On January 29, 2026, the Bank of Canada held its policy (overnight) rate at 2.25%. Inflation (CPI) was running at 2.3% (core 2.5%) and unemployment was 6.5% at the time.
Despite chatter about cuts early in the year, Josh’s read was that any further easing would land later in 2026 rather than right away.
The rate path (2023–2026)
The Bank of Canada policy rate over the 2½ years around this decision. It sat at 2.25% here.
Inflation vs the 2% target
Total CPI and the Bank's core measure against its 2% target — the “why” behind the decision. Inflation was 2.3% at the time.
Heads up: this covers the decision on January 29, 2026. Rates move constantly — for the rate and options that apply to you today, book a call.
Frequently asked
Did the Bank of Canada cut interest rates on January 29, 2026?
No — on January 29, 2026 the Bank of Canada held its policy (overnight) rate at 2.25%.
What was the Bank of Canada's policy rate in January 2026?
2.25% — the target for the overnight rate, with inflation (CPI) around 2.3%.
What does a rate hold mean for my mortgage?
If you're in a variable-rate mortgage, a cut lowers your rate (and payment or the interest portion) right away, while a hold leaves it unchanged. If you're on a fixed rate, it matters most at renewal. For what it means for your specific situation, book a call with Josh.