The Bank of Canada held its overnight policy rate at 2.25 per cent. The last time there was a rate change was in October, when the rate was lowered by a quarter of a per cent. In all of 2025, the Bank did that (0.25 per cent) four times, and four times the rate remained unchanged. There has not been an increase in more than two years.
After the latest announcement of Bank of Governor Tiff Macklem, the B.C. Real Estate Association summed it up like this:
"In the statement accompanying the decision, the Bank noted that U. S. trade restrictions and uncertainty continue to disrupt growth in Canada. The Bank projects modest near-term economic growth as population growth slows and businesses adjust to a new trade environment. The Bank forecasts the Canadian economy will expand by 1.1 per cent this year and 1.5 per cent in 2027. On inflation, the Bank expects price growth to stay close to its two per cent target over the next eight quarters, with trade-related cost pressures offset by slack in the economy.
"Better than expected economic data through the end of 2025 shifted policy expectations toward a rate increase from the Bank of Canada in 2026 and put upward pressure on long-term yields and mortgage rates. However, there are enough headwinds from the global economy including a sharp decline in the U.S. dollar and renewed tariff threats from the Trump administration that it is very unlikely the Bank will be tightening this year. Given an economy with weak growth and inflation at target, our stance remains that the Bank will be on hold throughout 2026, though mortgage rates may stay somewhat elevated relative to the overnight rate due to a higher risk premium being priced into medium and long-term yields."
Following are the Bank's schedule for the remaining seven interest-rate announcements in 2026:
Wednesday, April 29
Wednesday, June 10
Wednesday, July 15
Wednesday, September 2
Wednesday, October 28
Wednesday, December 9
Selling real estate, of course, isn’t always about having homes. It’s also about finding homes for buyers who also enlist the services of realtors. The plan is to find a perfect match.
