09/02/2026
📢 Bank of Canada Holds Rate at 2.25%
The Bank of Canada made its latest interest rate announcement today and, as expected, the overnight rate remains at 2.25%.
So, why didn’t they lower rates?
In simple terms, the Bank is trying to balance two things: keeping inflation under control while supporting Canada’s economy.
Right now, there’s still plenty of uncertainty. Inflation has been hovering around 3%, energy prices remain elevated, and new U.S. tariffs and Canadian counter-tariffs are creating additional uncertainty for both businesses and consumers.
The Bank doesn’t want to lower rates too quickly, only to see inflation start climbing again.
Think of it like driving a car, you don’t want to slam on the gas or the brakes. Right now, the Bank is taking a cautious approach, watching the road ahead and waiting to see how the economy and inflation develop.
The good news? No rate increase. 🙌
The Bank has indicated that it will continue watching economic growth and inflation closely and is prepared to adjust monetary policy if needed.
What happens next?
For now, we should expect the Bank of Canada to remain cautious. There’s no guarantee that another rate cut is coming soon, and the next scheduled announcement is October 28, 2026.
For homeowners, it’s important to remember that Bank of Canada decisions can have a more direct impact on variable-rate mortgages, while fixed mortgage rates are influenced more by the bond market.
If you have a mortgage coming up for renewal, are considering refinancing, or simply want to know whether fixed or variable makes sense for you, we’re here to help you understand your options.
Your mortgage. Your options. Our expertise. 💙
