01/28/2026
Bank of Canada holds rates steady.
Today, the BoC kept the overnight rate at 2.25%, with the Bank Rate at 2.5% and deposit rate at 2.20%—a signal of stability as the economy navigates global uncertainty.
Key takeaways:
🇺🇸 US growth remains strong, driven by AI investment and consumer spending, but US tariffs are still disrupting Canadian exports.
📉 Canadian growth stalled in Q4, though employment has picked up and domestic demand is improving.
📊 Inflation is trending near the 2% target, with core inflation easing—good news for long‑term rate stability.
🌍 Risks remain: US trade policies, geopolitical tensions, and the upcoming CUSMA review all create uncertainty.
🏡 What this means for homeowners & homebuyers:
With the policy rate unchanged and inflation near target, mortgage rates should remain stable in the short term. Excess supply in the economy and slowing population growth reduce pressure for future rate hikes. This environment could support more predictable borrowing costs for both fixed and variable-rate mortgages.
The Bank remains ready to respond if economic conditions shift—but for now, today’s hold helps reinforce confidence and stability.
For full details, check out our latest article: https://mortgagebrokersottawa.com/news-and-events/news/
