How to read this BoC rate screen
Interpreting the table and chart
Table rows correspond to Bank of Canada decision dates scheduled over the next year or so.
- Implied post-meeting rate is the expected target for the overnight rate after each meeting.
- Probability of hike/cut displays an approximate probability of a rate move at each meeting (step size defaults to 25bps moves but can be changed in the drop-down menu).
- # of hikes/cuts shows the cumulative number of hikes/cuts expected between now and each meeting (also dependent on the step size selected).
- Δ vs current (bps) shows the cumulative change in the overnight rate target priced-in between now and each meeting in basis points (+12.5bps = +0.125%).
The chart plots the implied post-meeting rate across all upcoming meetings. An upward-sloping line indicates that markets are pricing further tightening over time; a flat line suggests an extended pause; a downward-sloping line indicates expected cuts. Use the screen to see what is currently priced in and to compare today’s expectations with those from previous weeks or months.
What this page measures
The table and chart reflect market pricing, not a forecast. When the site refers to “probabilities,” it is describing the likelihood implied by tradable instruments that reference future policy settings. In other words, it is a snapshot of consensus pricing that may be wrong and will often move as new information arrives.
The page focuses on scheduled meetings, but policy decisions can sometimes occur outside regular meetings under extraordinary circumstances. Market pricing may also reflect expectations about communication, guidance, and financial conditions even when the headline policy rate is unchanged.
What “probabilities” mean (and what they don’t)
The probabilities on this site are market-implied. They describe what is priced, not what will happen. Markets can overreact, underreact, or price scenarios that never occur. The goal is to translate market pricing into a clean, intuitive summary of expectations using a consistent step size.
Step size matters because markets may be pricing smaller adjustments, larger moves, or a mix of outcomes across meetings. The probability fields are therefore best read as approximations that help summarize pricing, rather than precise forecasts.
Methodology summary
At a high level, the site uses interest-rate market instruments that reference future policy settings to infer an expected policy-rate path meeting-by-meeting. Those implied levels are translated into an implied post-meeting path and a cumulative change versus current, along with approximate probabilities of discrete moves based on the selected step size.
Data is updated multiple times daily but is not “live”. If the most recent fetch is temporarily unavailable, the page may display the most recent cached values.
Who this is for
This tool is useful for anyone who wants a fast, market-based read on Canadian monetary-policy expectations. It is commonly used by macro and rates-focused investors, traders, and researchers, as well as professionals who monitor BoC expectations as an input into decision-making.
Typical use cases include tracking how expectations change around major data releases and central bank communication, monitoring how pricing evolves between meetings, and forming scenarios for how the expected policy path may affect assets such as bonds, FX, equities, and credit.
About the Bank of Canada
The Bank of Canada is Canada’s central bank. Its mandate is to promote the economic and financial welfare of Canada. In practice, the BoC’s monetary policy framework is centered on an inflation target, and its primary policy rate is the target for the overnight rate, implemented within an operating band (supported by the deposit rate and bank rate). The overnight rate target influences broader financial conditions, including short-term money-market rates and borrowing costs across the economy.
Interest rate decisions are made by the Bank of Canada’s Governing Council on a scheduled calendar. At each decision point the Bank may leave the overnight rate target unchanged (“hold”), raise it (“hike”), or lower it (“cut”).
