04/16/2025
After seven consecutive rate cuts, today’s announcement came as no surprise: the Bank of Canada is holding the overnight target rate steady at 2.75%. That means the prime lending rate will remain unchanged at 4.95%.
With global uncertainty growing—especially around tariffs and ongoing trade tensions—the economic outlook is becoming harder to predict. On one hand, we could see a short-term rise in inflation. On the other, there’s the potential for a recession. Each path calls for a very different monetary policy response—raising rates in one case, cutting them in another.
For now, inflation remains within the Bank’s target range, unemployment is relatively healthy, and the overnight rate is in what they consider a “comfortable zone.” So, they’re choosing to stay the course with a “wait and see” approach.
👉 If your mortgage is coming up for renewal this year—or you're just wondering how this all affects your plans—I'm always happy to chat. You can book a time that works for you here: www.calendly.com/carolineroach
