# 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 This page shows the Bank of Canada's policy interest rate, the prime rate, Canadian inflation as measured by the consumer price index, and daily exchange rates, each with the date it applies to. The figures are fetched from the Bank of Canada once a day, and below them short sections explain what each one does to a loan, a mortgage or a money transfer. It 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. All of it ties back to numbers published by the Bank of Canada and Statistics Canada, and [Statistics Canada's consumer price index page](https://www.statcan.gc.ca/en/subjects-start/prices_and_price_indexes/consumer_price_indexes) is where inflation comes from. Inflation is published monthly, so its date will be older than the rest. How we handle official figures is on the [how we check rates](https://tax-services.ca/how-we-check-rates) page. The data is not real time. If you're about to sign something, check the current rate with your lender or bank. This is an independent information site: we provide no services, we do not represent the Bank of Canada or any organization, and we do not guarantee the figures are accurate. Nothing here is investment advice, and we don't tell you what to buy or when. ## Which tools do readers open most from this page? - [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 does the Bank of Canada policy rate mean for you? The policy rate is the Bank of Canada's target for overnight lending between banks, and 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? On 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. The [mortgage calculator](https://tax-services.ca/calculators/mortgage/mortgage-calculator) will run your own balance. ## Why does inflation matter to your money? Inflation is how fast consumer prices rise, and Statistics Canada tracks it with the consumer price index. 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. ## Do the exchange rates on this page match what a bank gives you? No. The daily rates above are a fair guide if you send money home, buy from abroad or earn in another currency, but banks and card companies add a margin to them. 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 with no connection to 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