Bank of Canada
Rate Announcement
​​​The Bank of Canada held its key interest rate at 2.75% in its June announcement, marking the second consecutive hold after two rate cuts earlier in the year.
This reflects a cautious approach due to ongoing uncertainty surrounding the Canadian economy and global trade, driven by the impact of US trade policy.
​Key takeaway from the BOC announcement:
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Policy Rate Remains at 2.75%:
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The Bank of Canada's key interest rate, the target for the overnight rate, remains at 2.75%.
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Second Consecutive Hold:
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This is the second consecutive announcement where the Bank has held the rate steady, following two cuts in January and March.
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Inflation and Economic Growth:
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While recent data indicates inflation is decelerating towards the Bank's target, economic growth remains slow.
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Potential Future Cuts:
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Some economists still anticipate further rate cuts in the future, but this will depend on how the economic situation evolves.
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Impact on Variable Rate Mortgages:
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For those with variable rate mortgages, a hold means their payments will remain stable, but they will not benefit from any potential decrease in interest rates.
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*Information provided by Chris Burns of BRX Mortgage*