The Bank of Canada Holds Rate Steady at 2.25%
A seventh straight hold, with a tone that leans toward inflation risk rather than relief. Here's what it means for Markham mortgages and the market.
Today's Decision
The headline is that nothing changed. The more telling story is why.
Rate Held at 2.25% for a Seventh Straight Meeting
The Bank of Canada kept its target for the overnight rate unchanged at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The rate has sat at this level since the Bank's last cut in October 2025.
- The continuing conflict in the Middle East is keeping global energy prices elevated.
- New U.S. tariffs and Canadian counter-measures followed the breakdown of trade talks, adding fresh uncertainty on both sides of the border.
- Second-quarter GDP grew 3.3% and unemployment eased to 6.4% in July — the domestic economy has real footing.
The Rate Path So Far
How we got here, and what's still on the calendar this year.
Rate Cut to 2.25%
The Bank's last cut, down from 2.50%, brought the rate to its current level.
Seven Consecutive Holds
The Bank has left the rate unchanged at every meeting since, weighing tariff and geopolitical risk against a recovering domestic economy.
Next Decision, With a Fresh Monetary Policy Report
Updated Bank forecasts accompany this call — the clearest signal yet on where rates head next.
Final Decision of the Year
Some economists now flag this meeting as a possible hike, not a cut, if energy prices and trade tensions stay elevated.
What This Means for You
Two sides of the same decision — your mortgage, and the market around you.
YOUR MORTGAGE
No Change Today — But Don't Bank on a Cut
Fixed-rate mortgages are unaffected until renewal, since fixed rates track bond yields rather than the overnight rate. Variable rates and lines of credit stay exactly where they are. The practical read: with the Bank's language leaning toward inflation risk, fixed and variable rates are more likely to hold or edge higher over the next few months than to fall. If your renewal lands in the next six months, it's worth having that conversation now.
THE MARKHAM MARKET
Stability Is Doing the Work Rate Cuts Usually Do
A rate that isn't moving, even if it isn't falling, gives buyers and sellers a known number to plan around. We're seeing steady activity across Markham's core neighbourhoods, and today's hold removes one more reason for buyers on the sidelines to keep waiting. For sellers, the calculus hasn't changed — well-priced homes in strong locations are still moving.
At a Glance
If you are... | What today's hold means |
|---|---|
Renewing a mortgage soon | Budget for a rate similar to today's — don't count on a cut before your renewal date |
Buying with a pre-approval | Your rate hold is protected either way; today's decision doesn't change your numbers |
Selling in the next few months | Buyer demand isn't being held back by falling rates — a stable rate keeps activity moving |
Waiting for rates to drop before buying | Worth reassessing — the Bank's tone suggests a cut isn't the likely next move |
FAQ
The Bank held its target overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. It's the seventh consecutive meeting without a change.
Fixed-rate mortgages are unaffected until renewal. Variable-rate mortgages stay the same, since they track the Bank's unchanged policy rate.
October 28, 2026, alongside an updated Monetary Policy Report, followed by the final decision of the year on December 9, 2026.
It's not the base case. The Bank flagged rising inflation risk from tariffs and energy prices rather than signalling readiness to cut, and some economists now see a possible hike in December.
That depends on your personal timeline and finances, but the Bank's own commentary suggests a near-term cut isn't guaranteed. If you're mortgage-ready, it's worth talking through your options rather than waiting on a move that may not arrive this year.
Not Sure What This Means for Your Move?
Whether you're renewing, buying, or selling in Markham, Michael John Lau and Neeraj Moolchandani will walk you through exactly how today's decision affects your numbers.