Bank of Canada Holds Rate Steady at 3.25% in April
The decision
The Bank of Canada left its overnight target rate unchanged at 3.25 percent on April 16, pausing after three consecutive 25-basis-point cuts since October 2025.
Why the pause?
Governor Tiff Macklem pointed to two factors:
- Services inflation: Price growth in shelter, dining, and travel remains above the 2 percent target.
- Labour market resilience: Unemployment ticked down to 5.9 percent in March, driven by strong hiring in construction and technology.
What it means for mortgage rates
- Variable-rate mortgages: Prime rate stays at 5.45 percent. Monthly payments are unchanged for variable-rate holders.
- Fixed-rate mortgages: Five-year fixed rates, which track bond yields, have been inching lower and currently sit near 4.4 percent.
- Renewals: Homeowners renewing from pandemic-era sub-2 percent rates will still face a significant payment increase.
Outlook
Most economists expect one more 25-basis-point cut in June or July, but the pace of easing has clearly slowed. Buyers and sellers should make decisions based on current rates rather than waiting for dramatic cuts.
This article summarizes the Bank of Canada's official announcement and does not constitute financial advice.
This article summarizes reporting from BNN Bloomberg. Read the full piece at BNN Bloomberg.
Disclaimer: This summary is generated with the assistance of AI and reviewed by our team. While we strive for accuracy, it is not a substitute for reading the original source material. The content does not constitute professional advice. If you believe something is inaccurate, please let us know.
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