09/02/2026
Bank of Canada Holds at 2.25% — But Fixed Mortgage Rates Are Moving Higher....
The Bank of Canada left its overnight rate unchanged today, but that doesn’t necessarily mean mortgage rates are standing still.
One of the key points in Dr. Sherry Cooper’s update below is that long-term bond yields have been rising, both globally and here in Canada. Since fixed mortgage rates are largely influenced by bond yields, we are already seeing some lenders increase their fixed rates.
So while the Bank of Canada may remain on hold for the remainder of 2026, fixed mortgage rates can still move independently — and right now the pressure is upward.
A great overview from DLC Chief Economist Dr. Sherry Cooper below 👇
https://mailchi.mp/sherrycooper/the-bank-of-canada-held-the-overnight-rate-steady-at-225-as-financial-conditions-tightened-reflecting-the-surge-in-long-bond-yields?e=f091e3193e
In the market? Email [email protected] for today's fixed or variable rate quotes.
Today, the Bank of Canada once again held the policy rate at 2.25%, the level it has held since October 2025. This is the bottom of the Bank's estimate of the neutral overnight rate, where monetary policy is neither expansionary nor contractionary. According to the Bank's policy statement, "The cont...
