Bank of Canada Raises Policy Rate to 2.50%
The Bank of Canada announced this morning that it has increased its policy interest rate by 25 basis points to 2.50%, marking its first rate increase since July 2023.
The decision reflects growing concerns about persistent inflation, particularly as elevated global energy prices increase transportation, production and operating costs across the economy.
The Bank now forecasts Canadian economic growth of 1% in 2026 and 2% in both 2027 and 2028. Meanwhile, inflation is expected to reach approximately 3.5% by year-end and average 3% in 2027, before returning toward the Bank's 2% target in mid-2028.
For Alberta, higher energy prices present a complex economic picture. Stronger commodity prices can support investment, export revenues and activity in the province's energy sector. At the same time, higher fuel and transportation costs place additional pressure on businesses, particularly those operating in logistics, manufacturing and distribution.
For Calgary's commercial real estate market, these competing forces are important. Energy-sector investment can support demand for industrial and office space, while higher financing and operating costs may influence development feasibility, leasing decisions and investment activity.
The Bank has indicated that further rate increases may be necessary, although future decisions will be approached cautiously amid continued economic and trade uncertainty.
Follow Clearview for insights into the economic trends shaping Calgary's commercial real estate market.
Source: Bank of Canada, Policy Rate Announcement, Oct. 28, 2026.
