Bank of Canada raises policy rate to 2.5% amid oil price surge

Bank of Canada raises policy rate to 2.5% amid oil price surge

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The Bank of Canada raised its policy rate by 0. 25 percentage point to 2. 5% on 28 October, its first increase since July 2023, and signaled that further hikes could follow to curb inflation driven by rising energy costs.

Analysts had expected the central bank to act as oil prices surged and core-inflation data gave mixed signals. Earlier reports noted that the hike would raise borrowing costs for variable-rate mortgages, lines of credit and auto loans while boosting returns on savings accounts, bonds and GICs. Some economists warned the move might be premature given weak growth and limited inflation pressure, and Governor Tiff Macklem had recently commented on the situation.

Actors

Bank of Canada Governor Tiff Macklem Avery Shenfeld Canadian Imperial Bank of Commerce Jeremy Kronick C.D. Howe Institute Nathan Janzen Royal Bank of Canada

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Canada Bangkok, Thailand United States

Articles

October 28, 2026
3 total
Bank of Canada raises policy rate by 25 basis points to 2.5%
Bank of Canada raises policy rate by 25 basis points to 2.5%

BNN Bloomberg • 28 Oct 13:54

The Bank of Canada increased its key interest rate to 2.5% and signaled possible further hikes to curb inflation driven by rising energy costs.

Credibility 78% Manip. 8% Center
Bank of Canada raises benchmark rate to 2.5% after three-year pause
Bank of Canada raises benchmark rate to 2.5% after three-year pause

Global News • 28 Oct 12:28

The Bank of Canada increased its policy rate by 0.25 percentage point to 2.5%, its first hike since July 2023, and will publish revised inflation and growth forecasts.

Credibility 72% Manip. 8% Center
Bank of Canada likely to raise rates as oil shock intensifies, while Fed expected to hold
Bank of Canada likely to raise rates as oil shock intensifies, while Fed expected to hold

The Globe and Mail • 28 Oct 11:00

Analysts anticipate the Bank of Canada will lift its policy rate for the first time in three years amid rising oil prices, while the U.S. Federal Reserve is projected to keep rates unchanged today.

Credibility 72% Manip. 9% Center
October 27, 2026
2 total
Bank of Canada rate hike expected to raise borrowing costs and lift savers' returns
Bank of Canada rate hike expected to raise borrowing costs and lift savers' returns

The Globe and Mail • 27 Oct 22:25

A likely quarter-point increase in the Bank of Canada’s policy rate will raise payments on variable mortgages, lines of credit and auto loans, while potentially boosting interest on savings accounts, bonds and GICs.

Credibility 72% Manip. 28% Center
Economists Warn Bank of Canada Rate Hike May Be Premature
Economists Warn Bank of Canada Rate Hike May Be Premature

Financial Post • 27 Oct 12:03

Top Canadian economists say a policy-rate increase by the Bank of Canada this week could be a mistake, citing weak growth and limited inflation pressure despite recent comments from Governor Tiff Macklem.

Credibility 72% Manip. 12% Center
October 25, 2026
1 total
Bank of Canada poised to raise benchmark rate amid persistent oil price surge
Bank of Canada poised to raise benchmark rate amid persistent oil price surge

The Globe and Mail • 25 Oct 19:20

Analysts expect the Bank of Canada to increase its policy rate for the first time in three years as oil prices remain high, though data on core inflation show mixed signals.

Credibility 78% Manip. 9% Center

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