Bank of Canada Holds Rate at 2.75% - Here's what it means

Posted On Jun 04, 2025

The Bank of Canada made its latest rate announcement today and decided to hold their rate at 2.75%. 

Why? 

Inflation is slowing, but not enough. The BoC is being cautious. They want to gauge tariff measures and make sure prices stay steady before making any big decisions. 

What this means for you:

• If you have a variable rate mortgage or line of credit, your rate and payments stay the same. 
• The BoC rate sets the Prime Rate at commercial banks, which is still 4.95%. This is what variable rate mortgages and lines credit are based on. 
• Fixed rates have no direct impact from the BoC rate. They're structured differently and can change anytime. 
• If you're shopping for a mortgage, this pause should help bring stability with rates.

The next rate announcement is July 30. I will keep you posted. 

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