This morning, the Bank of Canada announced that it is maintaining its target overnight rate at 2.75%. This brings an end to a series of seven consecutive rate cuts totaling 2.25 percentage points since June 5, 2024.
Despite a high level of uncertainty, weakening confidence, and a moderation in economic growth prospects, tariffs and supply chain disruptions are expected to push certain prices higher and increase inflation expectations.
The Governing Council did not provide any indication regarding the direction it may take at its next meeting scheduled for June 4. It simply stated that it will continue to assess the evolution and strength of inflationary pressures—those pushing inflation down due to a weakening economy, and those pushing it up due to rising costs.
Why work with a mortgage broker?
In a context where Bank of Canada decisions are increasingly difficult to predict, it is all the more important to be able to rely on an expert. A mortgage broker can help you understand the impact of changes in the policy rate on your financing strategy and choose an option suited to your situation, whether you are buying, renewing, or refinancing.