Bank of Canada Rate Hold April 2025

Date Posted: April 16, 2025

The Rate Announcement

The Bank of Canada is holding its overnight rate at 2.75%, citing global economic uncertainty—particularly around U.S. trade policy and tariffs—as a major concern. Two potential scenarios are being considered: one where limited tariffs cause only a temporary slowdown, and another where a prolonged trade war pushes Canada into recession and inflation above 3%.

What Does This Impact?

The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you will pay. The April 2025 rate hold from the Bank of Canada means that variable and adjustable mortgage holders will see no change in their interest costs and no change in their mortgage payments. Fixed rate mortgages are not as directly impacted by the BOC rate announcement, however the bond markets which influence fixed rates have largely already built in the expected 0.25% rate drop.

Getting Back on Track

For now, inflation sits at 2.3%, and while short-term expectations have risen, long-term forecasts remain stable. In Canada, weakening consumer confidence, softer job numbers, and reduced business investment are already taking a toll, which could have implications for borrowers, lenders, and the housing market.

The next rate announcement is scheduled for June 4th, 2025.

If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.

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BoC Announcement