Bank of Canada Holds Policy Rate at 2.75%

This morning, April 16, 2025, the Bank of Canada announced it will keep its key interest rate steady at 2.75%. This decision comes as the country faces heightened economic uncertainty due to ongoing trade tensions and tariffs with the United States, as well as recent signs of slowing economic growth and cooling inflation.

Key Points:

• The policy rate remains at 2.75%, unchanged since the last quarter-point cut in March.
  Inflation cooled to 2.3% in March, down from previous months.
  The Bank cited “widespread uncertainty” from the US-Canada tariff dispute, which complicates economic forecasts and policy decisions.
  Business and consumer confidence, along with the housing sector, have slowed due to market volatility and trade policy unpredictability.
  The Bank of Canada emphasized its commitment to price stability but warned monetary policy cannot offset all impacts of a trade war.

What This Could Mean For You:

• Homebuyers: Stable rates provide a predictable environment, helping you plan your next move with confidence. This steady footing can support ongoing affordability and borrowing options.
  Sellers: The pause in rate changes helps maintain current market stability, which can be advantageous as you position your property. Market resilience means opportunities remain for motivated buyers.
  Investors: While global uncertainties persist, the steady rate environment offers a foundation for cautious optimism and strategic planning in real estate and financial markets.

Looking Ahead

The Bank of Canada’s next rate announcement is scheduled for Wednesday, June 4, 2025. The Bank will publish its next Monetary Policy Report on July 30, 2025.

Read the Press Release.

Whether you’re a homeowner, prospective buyer, or real estate investor, understanding these market changes is crucial. As your trusted REALTOR®, I’m here to help you navigate these shifts and make informed decisions! Call, text, email, or DM me to chat about how this announcement affects your real estate plans!

For more information, contact:

Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca