Canada

Roughly neutral

Policy rate

2.25%

Last move Oct 2025

Inflation

2.07%

As of null

Real policy rate

0.18%

Policy rate less inflation

Debt to GDP

110.70%

2026 est.

Inflation target2%

Policy rate vs target+0.25 pp

Last move-25 bps cut

Months at current rate11

Real GDP growth1.50%

Next scheduled decisionNot published

Policy rate path, latest five years. Cycle peak 21.24% (Aug 1981).

The verdict

Canada sets its policy rate at 2.25%, against inflation of 2.07% — a real rate of 0.18% after inflation. The most recent decision was a 25bp cut in Oct 2025. The rate has held there for about 11 months. The bank targets 2% inflation, and prices are running above that at 2.07%; the policy rate stands 0.25 percentage points above target. On the fiscal side, the economy carries government debt of 110.7% of GDP (2026 est.) and real GDP growth of 1.5%.

Sources: policy rate and cycle history — BIS central bank policy rates (WS_CBPOL); inflation — national statistical agencies; debt and growth — IMF World Economic Outlook. Methodology: https://www.globalfinancialinfo.info/methodology/policy-rates · Dataset: https://www.globalfinancialinfo.info/global-economy · Free to print and share for non-commercial classroom use (CC BY-NC-ND 4.0).

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