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Interest rate decisions by major central banks shape economic conditions for businesses of all sizes. In Canada, the Bank of Canada’s policy rate serves as a cornerstone of monetary policy, influencing domestic borrowing costs, investment decisions, and importantly for international operators, exchange rate movements. Businesses engaged in cross-border trade or international payments should pay close attention to the Bank’s schedule for 2026 and understand its implications for foreign exchange risk.
Understanding the Bank of Canada’s Role
The Bank of Canada is responsible for setting the overnight policy interest rate, which acts as the foundation for interest rates throughout the Canadian financial system. This policy rate affects lending and borrowing costs, business investment decisions, consumer spending, and, crucially, the value of the Canadian dollar relative to other currencies.
When interest rates rise, the Canadian dollar typically strengthens as yield-seeking capital flows into Canadian markets. Conversely, when rates fall or remain unchanged while other major central banks adjust policy, the Canadian dollar may weaken. These movements matter for every business that buys or sells in foreign currencies.
2026 Official Interest Rate Announcement Dates
The Bank of Canada has published its official schedule of policy interest rate announcements for 2026. These dates represent moments when the Bank may adjust rates or provide updated economic guidance that can influence exchange rates and market expectations
2026 Bank of Canada Interest Rate Announcement Schedule
All announcements are released at 09:45 Eastern Time on the following dates:
- January 28, 2026
- March 18, 2026
- April 29, 2026
- June 10, 2026
- July 15, 2026
- September 2, 2026
- October 28, 2026
- December 9, 2026
Alongside certain interest rate announcements, the Bank will also publish the Monetary Policy Report, an assessment of economic conditions and inflation projection that can drive market expectations and exchange rate volatility.
Why These Dates Matter for FX and International Payments
For businesses that pay or receive funds in foreign currencies, especially those invoicing or settling in US dollars or other major currencies, central bank communications and decisions are key drivers of FX volatility. While the Bank of Canada’s decisions primarily influence the Canadian dollar, they also interact with global monetary policy including that of the United States Federal Reserve or the European Central Bank.
FX markets react not only to changes in the policy rate but also to how central banks interpret economic data, inflation trends, labour markets, and global conditions. Unexpected guidance or shifts in outlook at policy announcements can lead to meaningful swings in currency values in a short period of time.
For example, the Bank of Canada trimmed its key interest rate to 2.25 percent in late 2025 while signalling that further cuts might be limited, a development that momentarily supported the Canadian dollar as markets reassessed expectations for future policy.
Similarly, recent Canadian economic data showing weak manufacturing conditions and relative strength in the US dollar underline the importance of currency risk management for businesses operating across the Canada-US border or with broader international exposure.
Impact on SMEs with FX Exposure
Small and medium-sized enterprises that engage in international trade or make foreign currency payments face FX risk in two primary ways:
Transaction Exposure
When a business agrees to make or receive payment in a foreign currency, future settlement may occur at a very different exchange rate than at the time of contract negotiation. Central bank announcements, including those of the Bank of Canada, often coincide with heightened FX volatility.
Economic Exposure
Even without a specific FX transaction, the competitive position of an SME can be affected by exchange rate movements. A stronger Canadian dollar makes Canadian exports more expensive for foreign buyers, potentially reducing revenue in local currency terms. A weaker Canadian dollar can increase the cost of imported goods and services.
Planning ahead and incorporating the Bank of Canada’s scheduled announcements into budgeting and risk management processes can help businesses avoid unexpected costs and protect profit margins.
The Importance of FX Strategy and Advance Planning
Because central bank decisions are scheduled well in advance, businesses have the opportunity to integrate these key dates into their financial planning and FX hedging strategies. Budgeting at a known exchange rate or securing forward contracts around anticipated policy announcements can provide certainty and reduce the risk of unfavourable currency moves.
A disciplined approach to FX planning involves:
- Identifying currency exposures tied to key dates on the policy calendar
- Assessing the likelihood and potential impact of rate decisions on exchange rates
- Using budgeted FX rates to stabilise cost projections and protect margins
- Considering risk management tools such as forward contracts or options to lock in rates ahead of volatile periods
This structured approach helps SMEs anticipate market conditions rather than react to them, supporting long-term financial stability and strategic decision-making.
Planning ahead with PulseFX
Central bank policy announcements like those from the Bank of Canada are not simply economic events. They influence exchange rates, corporate cash flow, cross-border pricing, and ultimately profitability for businesses engaged in international trade.
At PulseFX, we work with SMEs to develop FX strategies that align with their payment schedules, budget cycles, and risk tolerance. By proactively managing currency risk and planning around known policy announcement dates, businesses can protect margins and strengthen financial resilience.
If your organization has exposure to the Canadian dollar, the US dollar, or other global currencies, we invite you to speak with our FX specialists to explore how a budgeted rate strategy can help you navigate the 2026 policy calendar with confidence.
