The Bank of Canada and the US Federal Reserve both had their last rate setting meeting of 2025 today. These meetings are of interest to the DIY investor because they set the bar for the interest rate paid on short term loans / high interest savings accounts. I track a universe of HISAs and ETFs of interest over at https://moneyengineer.ca/hisa-and-short-term-bond-table-canada-us/.

The Bank of Canada announcement is here, and the US Fed announcement is here. The Bank of Canada kept things the same, with a rate of 2.25% while the US cut their rates by a quarter point, so they’re now sitting in a range of 3.5-3.75%. Anyway, the gap between the US and Canadian rates is narrowing, but the US overnight rates are still 1.5% higher (aka 150 basis points) and so it pays to use USD money market funds and HISAs if you’re able.

The next opportunity for the banks to mess with interest rates is January 28, 2026.