# Bank of Canada rates, inflation and exchange rates > The Bank of Canada policy rate, prime rate, inflation and exchange rates with the date of each figure, plus what they mean for a loan or a mortgage These are the Canadian numbers people check most when a loan, a mortgage or a money transfer is on the table: the Bank of Canada's rate, inflation and exchange rates. Each one shows the date it applies to, and the page updates once a day. How we handle official figures is on the [how we check rates](https://tax-services.ca/how-we-check-rates) page. The page is for anyone whose money moves with interest rates, prices or currencies. Renewing a mortgage, shopping for a car loan, choosing a GIC, paying a bill in another currency or just wondering why groceries cost more than last year, all of it ties back to a handful of numbers published by the Bank of Canada and Statistics Canada. Here they sit in one place, each with its date, so you can see how current it is. Below the figures you'll find short explanations of what each one does to you in practice. The policy rate nudges your variable rate, inflation shrinks savings that earn too little, and exchange rates decide what a payment abroad really costs. After a few minutes you should be able to read a news story about a rate decision and know whether it affects you, and you can follow the links to calculators that show the effect in dollars. This isn't investment advice, and we don't tell you what to buy or when. A word on freshness. The figures are fetched from the Bank of Canada once a day, not in real time, and each one shows the date it applies to. Inflation is published monthly, so its date will be older than the rest. If you're about to sign something, check the current rate with your lender or bank. ## Most read right now - [Mortgage calculator](https://tax-services.ca/calculators/mortgage/mortgage-calculator)See what a different rate does to your monthly payment. - [Fixed vs variable mortgage](https://tax-services.ca/calculators/mortgage/fixed-vs-variable-mortgage)Compare the two on your own numbers before you commit. - [Mortgage renewal calculator](https://tax-services.ca/calculators/mortgage/mortgage-renewal)Check what a renewal at today's rates means for your payment. - [GIC calculator](https://tax-services.ca/calculators/savings-budget/gic-calculator)See what a given rate earns over the term. - [Personal loan calculator](https://tax-services.ca/calculators/loans-debt/personal-loan-calculator)Work out the payment and the total interest on a loan. ## What are today's rates? ## What do these numbers mean for you? The policy rate is the Bank of Canada's target for overnight lending between banks. You never pay it directly. It matters because banks set their own prime rates around it, and prime is the base for many variable-rate loans, lines of credit and mortgages. The Bank carries out monetary policy by influencing short-term interest rates. It does this by adjusting the target for the overnight rate on eight fixed dates each year. Policy interest rate, Bank of Canada, [bankofcanada.ca](https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/) When the policy rate moves, variable rates usually move with it. Fixed rates follow bond markets instead, so they can change even when the policy rate doesn't. If you're renewing or shopping, the [mortgage calculators](https://tax-services.ca/calculators/mortgage) show what a different rate does to your payment, and the [loan calculators](https://tax-services.ca/calculators/loans-debt) do the same for a car or personal loan. ## What does one percentage point cost on a mortgage? Take a $400,000 variable-rate balance. One extra percentage point means about $4,000 more interest over a year, roughly $333 a month at the start. That's a rough figure that ignores how your balance shrinks, and some variable mortgages keep the payment fixed and stretch the amortization instead. Ask your lender which kind you have before the next rate announcement, not after. ## Why does inflation matter to your money? Inflation is how fast prices rise. At 3% a year, $1,000 buys what $970 would have a year earlier. Savings that earn less than inflation lose buying power even while the balance grows, which is worth knowing before you pick a savings account or a GIC. The [interest calculator](https://tax-services.ca/calculators/savings-budget/interest-calculator) shows what a given rate does to a balance. Inflation also feeds into tax. Many tax brackets and credits are indexed each year, so the thresholds on the [limits and rates page](https://tax-services.ca/tax-numbers) usually rise with it. The [savings and retirement guide](https://tax-services.ca/guides/savings-and-retirement) shows how the registered accounts fit in. ## What about exchange rates? Sending money home, buying from abroad or earning in another currency? The daily rates above are a fair guide, but they aren't what you'll get at a bank or on a card. Those add a margin, so ask for the rate before you commit. Say a transfer carries a 2.5% margin: on $2,000 that's $50 gone before the money lands, a few bucks you could have kept. If you're planning something bigger, the [calculators](https://tax-services.ca/calculators) cover pay, tax, mortgages and savings. Earning abroad also affects your return, so see the [foreign income article](https://tax-services.ca/articles/foreign-income) for how Canadian residents report it. ## What is the CRA saying? The five most recent news releases from the Canada Revenue Agency are below, each linking to the CRA's own page. We're an independent publisher and we have no connection with the CRA, so we only point to what it has published. More headlines and context are on the [tax news page](https://tax-services.ca/tax-news). --- Source: https://tax-services.ca/rates-and-markets Last updated: 2026-10-05 Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer