Bank of Canada Holds Interest Rate at 4.5%
The central bank maintains its key rate, signalling cautious optimism about inflation trends and what it means for Ontario mortgage holders.
The Bank of Canada has elected to hold its overnight policy rate steady at 4.5%, citing balanced risks between sticky core inflation and a clearly cooling labour market.
For Ontario mortgage holders, the hold is a small reprieve. Variable-rate borrowers will see no immediate change to their payments, and bond yields — which drive 5-year fixed pricing — have drifted lower in anticipation of an eventual cut later this year.
What we're telling clients: if your renewal is in the next 6–9 months, get a rate hold now. If you're refinancing for cash flow, don't try to time the market — a properly structured refinance today is almost always more valuable than waiting for a 25-bps cut.