Bank of Canada Holds Overnight Rate at 3.75% as TSX Financials Advance on Stable Mortgages
Governing Council emphasizes balanced macroeconomic risks, noting progress on CPI core measures while monitoring five-year mortgage renewal cycles.
By Elena Rostova, CFP® • Reviewed by David Sterling, CFA • Updated November 4, 2026
Primary Source: Bank of Canada
The Bank of Canada held its target for the overnight rate at 3.75%, with the Bank Rate at 4.00% and the deposit rate at 3.75%, continuing its policy of balance sheet normalization.
Monetary Assessment & TSX Dynamics
- Core CPI Trajectory: Preferred core inflation metrics (CPI-median and CPI-trim) tracked inside the 2.5% corridor, supported by stabilizing retail energy and food costs.
- Mortgage Debt Absorption: Canadian chartered banks reported orderly renewals across fixed-rate five-year mortgage cohorts with negligible delinquency upticks.
- TSX Composite Performance: The S&P/TSX Composite added 120 points, led by the Big Six commercial banks and energy heavyweights as West Texas Intermediate crude consolidated above $76.
Governor Tiff Macklem reiterated that future policy decisions will be taken meeting-by-meeting, balancing household credit conditions against ongoing business capital investment.
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