The Bank of Canada held interest rates steady at 2.25 per cent this week for the sixth consecutive decision, in a move that will keep variable rate mortgages stable for the time being.
Governor Tiff Macklem said Wednesday that economic growth appears to be resuming after stalling earlier this year, but war in the Middle East remains volatile and oil prices could increase again.
For months, the Bank of Canada has been balancing inflationary pressure from the war with a shaky economy. The former issue would imply the need to increase rates, while the latter could be helped with lower rates.
However, most Bay Street economists expect that the Bank of Canada will stand pat for the rest of the year. Douglas Porter, chief economist at Bank of Montreal, wrote in a note to clients that a dramatic flare-up in oil prices is the main factor that could upend his expectations that interest rates will hold.
Bond swaps markets, which capture investor sentiment on monetary policy, expect that a rate hike is possible by the end of the year, according to Bloomberg data.
Meanwhile, fixed rate mortgages, which are not directly affected by BoC rate decisions, have remained relatively steady around the 4 per cent level. In recent weeks, rates have pushed just below the 4 per cent level amid increased competition from lenders.
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Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday.
