Bank of Canada Rate History — How Rates Have Changed (2019–2026)

Bank of Canada Rate Timeline: 2019–2026

Date	Rate	Change
Jan 2019	1.75%	Hold
Mar 2020	0.25%	-1.50% (COVID emergency cuts)
Mar 2022	0.50%	+0.25% (hiking begins)
Jul 2023	5.00%	Peak rate
Jun 2024	4.75%	-0.25% (cutting begins)
Dec 2024	3.25%	Multiple cuts
Mar 2025	2.75%	-0.25%
Jun 2026	2.25%	Hold (5th consecutive)

What Rate History Tells Us

The BoC moved rates from emergency lows (0.25%) to a 22-year high (5.00%) in just 16 months — the fastest hiking cycle in Canadian history. This caused significant payment shock for variable rate holders and renewers.

Impact on Mortgage Holders

• Variable rate borrowers (2020–2022): Enjoyed historic lows but faced $500–$1,000/mo payment increases during the hike cycle
• Fixed rate borrowers (2020–2022): Locked in at 1.5–2.5% — now facing payment shock at renewal at 4.5–5%
• New buyers (2026): Benefit from rates well below the 2023 peak

What's Next for the BoC?

With inflation at 2.8% (slightly above the 2% target) and GDP growth slowing to 1.2%, most economists expect the BoC to hold through summer 2026 with potential for 1–2 more cuts in Q4 2026 or early 2027 if inflation continues to moderate.

⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.