Vince Di Risio - Mortgage Agent

The Bank of Canada just held rates at 2.25%, leaving the prime lending rate at 4.45%.

So... why aren't rates coming down if the economy is slowing?

The answer may be sitting at your local gas station. ⛽

Inflation jumped back up to 2.4%, driven largely by a massive spike in energy prices. Gas prices surged more than 20% in a single month, creating fresh concerns that inflation could stick around longer than expected.

At the same time:

📈 Inflation is moving higher
📉 Consumer spending is slowing
🌎 Global uncertainty remains elevated
🏦 The Bank of Canada is stuck between supporting growth and fighting inflation

For now, they've chosen to wait.

What does that mean for Canadians?

✅ Variable-rate borrowers avoid another increase
✅ Borrowing costs remain stable for now
⚠️ Fixed rates are still being influenced by bond markets and global economic conditions

The real question isn't what happened today.

It's what happens next.

If inflation cools and economic growth weakens, rate cuts could return to the conversation. If energy prices remain elevated, the Bank may stay on the sidelines longer than many borrowers hoped.

What do you think the Bank's next move will be? 👇

CostOfLiving FinanceTok MortgageBroker RealEstateCanada MoneyMatters