Is this the beginning of another rate-hiking cycle?
Possibly.
Energy remains a key concern. Oil prices remain elevated, and with no clear resolution to the war in sight, the Bank now expects those pressures to last longer—keeping inflation higher through 2027 and into 2028.
Today’s quarter-point increase is intended to reduce the risk that higher energy costs spread more broadly into the prices of other goods and services.
Governor Tiff Macklem emphasized that the Bank will take things one meeting at a time, as trade tensions and the war in Iran continue to cloud the outlook.
Could more increases follow?
Bank of Canada historical data shows that past rate-hiking cycles tend to include at least three increases, typically in increments of 0.25 percentage points.
And while history doesn’t guarantee what happens next, it gives us a reason to prepare for the possibility that today’s increase won’t be the last.
Variable Rate Mortgage Holders:
Your payment is static and will stay the same. Today's rate increase adjusts the amount of principal and interest towards your payment.
Adjustable Rate Mortgage Holders
Your payment will increase. Your lender will advise you of your new payment and when it takes effect.
As a rough guide, a 0.25-percentage-point increase could add approximately $15 per month for every $100,000 owing. Your actual increase depends on your rate and remaining amortization.
Fixed Rate Mortgage Holders
Today’s announcement does not change your existing fixed mortgage rate or payment during your current term.
If your budget is feeling stretched—or you’d like to understand what further increases could mean for your mortgage—let’s review.
2026 Bank of Canada Announcement Schedule:
December 9.