06/11/2026
The Bank of Canada held its rate at 2.25% today. That's five holds in a row, and exactly what economists expected.
Here's the tension the Bank is managing. Oil prices have pushed inflation up to 2.8%. But the economy is soft, GDP barely moved in the first quarter. Raise rates and you slow things down further. Cut rates and you risk feeding inflation. So they're holding, and BMO expects them to keep holding through the end of the year.
One thing that stood out to me: when asked if Canada is in a recession, Macklem said the economy hasn't really grown in the past year, but it hasn't shrunk either. The Bank actually expects growth to pick back up this quarter.
What does this mean locally? Rate stability. If you've been waiting for the "right" rate before buying or making a move-up play, this is about as predictable as the environment gets. Variable rates aren't moving, and lenders can price fixed terms with confidence.
Thinking about your next move? Send me a message and let's run your numbers.
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