Canada's central bank raised its key rate to 2.5% on October 28, 2026.
The rate had sat at 2.25% since October 2025. This ends a three-year wait.
The key rate rose from 2.25% to 2.50%. That is a quarter-point move.
Oil prices are running hot. Brent crude touched $103, a six-month high.
Prices rose 3.1% in September. The Bank's target range tops out at 3%.
Gas prices jumped 27.8% in a year. Energy prices rose 19.0%.
The Bank fears high energy costs will push up prices for everything.
There could be a need to raise rates again, said Governor Tiff Macklem.
Big banks raised prime to 4.70% on October 29. Variable payments will rise.
A $500,000 variable mortgage now costs about $70 more a month.
Savings accounts and GICs should pay a little more after the hike.
The next rate decision is December 9. Tap below for the full explainer.
Get the full breakdown, key numbers, and what happens next.
Read on Rive News