Bank of Canada holds steady - Wright Sisters Group

On June 4, 2025, the Bank of Canada announced that it’s keeping its key interest rate at 2.75%. This marks the second time in a row the Bank has decided not to raise or lower the rate—and that’s big news if you’re thinking about buying or selling a home, or if you already own one.

So, what does this mean for you? Let’s break it down.

Why the Bank Held the Rate

While overall inflation in Canada is cooling (sitting at 1.7% in April), core inflation—which strips out things like gas and food—has been more stubborn, staying above 3%. That’s higher than the Bank of Canada’s ideal range, which is 1–3%.

At the same time, parts of the economy are starting to show signs of slowing down. Unemployment is up slightly, consumer spending is down, and business investment is softening. So, the Bank is in a tough spot—trying to fight inflation without causing too much economic slowdown.

Their solution? Stay the course, and keep the rate where it is for now.

How This Affects Real Estate

📉 Mortgage Rates Stay Steady
Since the Bank of Canada’s overnight rate directly influences variable mortgage rates, this means those won’t change right now. If you have a variable-rate mortgage, your payments are likely staying the same—for now.

🏡 Good News for Buyers
Stability is helpful for buyers trying to plan ahead. Holding rates steady gives buyers a clearer picture of what their mortgage payments will look like and may keep some confidence in the market.

💰 Sellers Might See More Action
With rates holding steady and some expectation of future cuts later this year, more buyers may re-enter the market over the summer. This could mean more showings, more competition, and potentially stronger offers.

Looking Ahead

Most economists think the Bank may start lowering rates later this year—if inflation continues to cool and the economy softens further. That would be a welcome shift for both buyers and homeowners renewing mortgages.

The next rate announcement is on July 16, 2025, so we’ll be keeping an eye on what the Bank does next.

In Summary: What You Should Know

The Bank of Canada held rates steady at 2.75% on June 4.
No immediate changes to mortgage rates, especially for variable-rate holders.
More stability could help encourage buyers over the summer.
Future rate cuts are possible if inflation trends continue downward.

Whether you’re thinking about making a move or just want to know how this affects your mortgage, it’s a great time to stay informed—and to chat with a real estate professional if you’re unsure how to navigate this market.

📩 Need help figuring out what this means for you? Let’s talk—we’re here to guide you.