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Canada’s central bank kept its key policy rate unchanged, but said it could raise rates if needed.
Officials said Middle East conflict could lift gasoline prices and boost inflation short term, with spillover risks contained.
The governor said policymakers would look through immediate inflation impacts, but act if energy costs stayed high.
He also said rates could be cut if energy prices fell and the economy weakened further.
After the decision, the Canadian dollar slipped slightly, while markets increased bets on a later rate hike.
I’m watching Canada’s central bank balance inflation risks from higher energy prices against a weak economy. Policymakers are holding steady for now, but they’re signaling flexibility if conditions change.

Some developers offered to cover up to one year of mortgage payments on new homes.
The offer capped at about $50K, suggesting homes around $1M, with move-in by end of 2026.
Experts say buyer incentives grow during slow markets, and perks are more common now.
Another builder offered up to a year of property taxes, utilities, and costs, capped near $12.5K.
Brokers say perks now include covered fees, parking, lockers, and upgraded finishes.

Iran war rattled bonds, reviving inflation worries as spring selling season began.
30-year rate now highest in over a month; a year ago it averaged 6.65%.
15-year fixed rate ↑to 5.50% from 5.43%.
Existing-home sales ↑1.7% in February; NAR said sales hit 4.09 million annual pace, beating expectations.
Oil rose above $100 a barrel; 10-year yield back over 4.2%, prompting lender reprices for the worse.

Booming Growth: Industry projected to hit $182.6 billion by 2030.

Strong Pace: Growing at over 10% annually.

Digital Shift: Tech and fintech are transforming how brokers operate.

Consumer Demand: Clients want remote advice, transparency, and personalized service.

Key Tools: Rise of online platforms, digital onboarding, and data-driven rate comparisons.

Bank of Canada held rates at 2.25% as expected, citing weaker growth, soft labor market, and rising inflation risks globally.

Middle East conflict pushed oil and gas prices higher, tightening financial conditions, increasing volatility, and complicating policy outlook amid uncertainty.

After aggressive cuts from 2024 to 2025, Bank signals data dependence; next decision expected April 2026 as markets watch closely.

The Bank of Canada policy rate is currently 2.25%, with most forecasts expecting interest rates to remain largely stable through 2026.

Canada’s prime rate sits near 4.45% while inflation is about 2.3%, suggesting borrowing costs may stay steady rather than fall sharply.

By the end of 2026, about 33% of Canadian mortgage holders are expected to face higher payments when renewing their mortgages.

Borrowers renewing 5-year fixed mortgages may see average payment increases around 20%, reflecting the shift from ultra-low pandemic-era rates.

The central bank may maintain a flexible policy approach as inflation stays close to the 2% target, allowing room to respond to unexpected economic changes.

The economy is currently operating with excess supply, while inflation remains slightly above target, requiring cautious monetary policy adjustments.

Interest rate cuts remain possible, but only if economic growth weakens significantly or inflation falls consistently below the target level.

The most likely outlook suggests inflation hovering near 2% through 2026, leading policymakers to keep interest rates unchanged for most of the year.