Rates Don’t Rise
So we continue to live in a creditor’s Utopia. For now, the Bank of Canada is keeping their key overnight rate at 1/2%.
Those who carry debt are now dancing in the streets. They know that their debt rate will not go up. The Government might be one of those debtors who are celebrating too.
Interestingly, the banks are starting to raise their mortgage rates for longer-term mortgages. This suggests the banks think the interest rates may start going up sometime soon. Alternatively, they may figure they can make money off folks by raising their rates.
The Bank of Canada’s statement was:
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.
Monetary Policy Report October 2009
So will these rates continue until mid-year next year? Good to know, guess I should dump my Bond Mutual Fund in March of next year then? It’s good to keep that in mind too.
Living La Vida Loca de Deuda
To paraphrase Mr. Ricky Martin, let us not all continue to live the Crazy Debt Life, let us take advantage of this break in interest rates to pay off our debts and get our Personal Finance life back into an orderly state.
Yes, for every $50 extra you pay off on your debt at this low rate you may only see $2 pay back for the year (assuming a 4% rate), however, if rates double (or more) in the next 2 years, what then? Kill the debt demon while it is weak. If you wait too long it might find more strength!
📈 Bank of Canada Overnight Interest Rate (2005–2025)

🔍 Key Highlights:
- 2005–2007: Rates hovered around 2.75% to 4.50%, reflecting a stable economic period.
- 2008–2009: In response to the global financial crisis, the Bank of Canada slashed rates to a historic low of 0.25%.
- 2010–2018: Gradual increases brought rates up to 1.75% by late 2018.
- 2020: The COVID-19 pandemic prompted a rapid reduction back to 0.25% to support the economy.
- 2022–2023: To combat rising inflation, rates were increased sharply, reaching 5.00% by mid-2023.
- 2024–2025: As inflation pressures eased, the Bank began lowering rates, settling at 2.75% by April 2025.
For a detailed breakdown and the most recent data, you can visit the Bank of Canada's official Interest Rates page.
Interest Rates in 2009
- October 2008 rates continued to fall, but did we plan accordingly? No, we spent more.
- January 2009 rates were at 1%, money was effectively free.
- April 2009 0.25 % Interest Rates, Holy Cow!!!!
- Interest Rate Hovers July 2009
- Interest rates didn't rise in September 2009
- October 2009 rates stayed the same
- Still Cheap to borrow in December 2009
- Interest Rates Going Nowhere For January 2010