Bank of Canada Holds Rates - What This Means for You
The Bank of Canada has decided to hold its overnight rate at 2.25%.
That’s good news if you were worried about another rate increase… but it also leaves a big question: What happens next?
What’s going on in the economy?
There’s a bit of a mixed picture right now.
The economy is still growing, but slowly.
Spending is holding things up, while trade issues and uncertainty are slowing business activity.
At the same time:
- The job market is soft
- Housing activity has slowed
- Affordability is still a challenge
What about inflation?
Inflation came in at 2.4% in March, mainly due to higher gas prices.
But here’s the important part: Core inflation is still sitting close to 2%, which is exactly where the Bank wants it.
In other words… inflation is elevated, but not out of control.
So why didn’t the Bank change rates?
Because right now, they’re watching closely.
- Higher oil prices are pushing inflation up
- But those increases haven’t spread across the entire economy
- Longer-term inflation expectations are still stable
So instead of reacting too quickly…The Bank is taking a “wait and see” approach.
If you are like me, and you like to look at numbers, here is a table summarizing the Prime Rate changes in Canada from 2010 to today:
| Effective Date | Prime Rate | Change |
|---|---|---|
April 29, 2026 | 4.45% | 0.00% |
March 18, 2026 | 4.45% | 0.00% |
Jan 28, 2026 | 4.45% | 0.00% |
Dec 10, 2025 | 4.45% | 0.00% |
Oct 29, 2025 | 4.45% | -0.25% |
Sept 17, 2025 | 4.70% | -0.25% |
July 30, 2025 | 4.95% | 0.00% |
June 04, 2025 | 4.95% | 0.00% |
April 16th, 2025 | 4.95% | 0.00% |
| March 12th, 2025 | 4.95% | -0.25% |
| Jan 29th, 2025 | 5.25% | -0.25% |
| Dec 11th, 2025 | 5.45% | -0.50% |
| October 23, 2024 | 5.95% | -0.50% |
| Sept 4, 2024 | 6.45% | -0.25% |
| July 24, 2024 | 6.70% | -0.25% |
| June 5, 2024 | 6.95% | -0.25% |
| July 12, 2023 | 7.20% | +0.25% |
| June 8, 2023 | 6.95% | +0.25% |
| January 25, 2023 | 6.70% | +0.25% |
December 8, 2022 | 6.45% | +0.50% |
| October 27, 2022 | 5.95% | +0.50% |
| September 8, 2022 | 5.45% | +0.75% |
| July 14, 2022 | 4.70% | +1.00% |
June 2, 2022 | 3.70% | +0.50% |
April 14, 2022 | 3.20% | +0.50% |
| March 3, 2022 | 2.70% | +0.50% |
| March 30, 2020 | 2.45% | -0.50% |
| March 17, 2020 | 2.95% | -0.50% |
| March 5, 2020 | 3.45% | -0.50% |
October 25, 2018 | 3.95% | +0.25% |
| July 12, 2018 | 3.70% | +0.25% |
| January 18, 2018 | 3.45% | +0.25% |
| September 7, 2017 | 3.20% | +0.25% |
| July 13, 2017 | 2.95% | +0.25% |
| July 16, 2015 | 2.70% | -0.15% |
| January 28, 2015 | 2.85% | -0.15% |
| September 9, 2010 | 3.00% | +0.25% |
| July 21, 2010 | 2.75% | +0.25% |
| June 2, 2010 | 2.50% | +0.25% |
What this means for you as a borrower?
Variable rates remain unchanged.
Fixed rates are still influenced by bond yields
Future rate cuts are possible, but not guaranteed
This isn’t a “rates are dropping fast” environment.
It’s a strategy matters more than timing environment.
Bottom line
The Bank is trying to balance two things:
- Keeping inflation under control
- Without slowing the economy too much
And right now, holding steady is the safest move.
If you’re planning to buy, refinance, or renew, this is where having a clear plan matters more than trying to predict the next rate move.
Need help understanding how this affects your mortgage?
Let’s connect for a quick chat — I’ll walk you through what this decision means for your specific situation.
Let’s chat!
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