The Bank of Canada released its final announcement of 2025 yesterday and, as widely expected, held the overnight rate at 2.25%. This means most banks will keep their prime lending rate as is as heading into 2026.
The Bank noted continued progress on inflation, with CPI at 2.2% in October and core measures between 2.5% and 3%. Underlying inflation pressures are easing, and the current rate level is viewed as appropriate to keep inflation near the 2% target while supporting the economy through ongoing global shifts.
In Canada, GDP grew by 2.6% in Q3, surprisingly on the upside, though much of that strength came from trade volatility rather than domestic demand. The Bank expects modest growth in Q4 and a pickup in 2026, while unemployment has eased slightly to 6.5%.
What this means for you:
→ Variable-rate mortgages and lines of credit remain unchanged.
→ Fixed rates may still fluctuate based on bond yields, so keeping an eye on the next few weeks is worthwhile.
→ If you’re planning a purchase or renewal in early 2026, you can continue exploring options without immediate pressure from a rate shift.
