The Bank of Canada just announced it’s holding the overnight rate at 2.75%, keeping most lenders’ prime rate unchanged at 4.95%.
This was a cautious move as the BoC monitors inflation, trade uncertainty, and a softening labour market. With unemployment rising to 6.9%, consumer confidence dipping, and housing activity slowing, the Bank is treading carefully to avoid doing too much, or too little.
While there’s no change today, the big picture hasn’t shifted much: most major banks still forecast two or three more cuts by the end of the year, bringing the overnight rate closer to 2.0–2.25%.
Why It’s Still a Good Time to Plan
Even in a holding pattern, there’s plenty you can do:
- Renewal coming up? Let’s explore short-term fixed options, these offer stability throughout your term.
- Shopping for a home? Today’s calmer market and softening prices might be your window to buy with less competition.
- Carrying high-interest debt? Now could be the time to look at consolidation through a refinance or HELOC.
Remember, today’s announcement impacts adjustable-rate mortgages, variable rates, and HELOCs. If you’re in a fixed-rate mortgage, you’re not directly affected, but reviewing your strategy is always a good idea.
Let’s build a plan that keeps you ahead of the curve, whatever the next few months bring. Reach out anytime. www.chatwithlisareynolds.ca
