The Bank of Canada paused its streak of rate cuts in April, following seven consecutive rate cuts over the past year, holding the overnight rate at 2.75%
It seems a lot of people have been overly optimistic that a further rate cut was in the cards for this April however, with market uncertainty here along with political uncertainty, both here and in the United States, it was felt that a wait-and-see approach would be prudent for the time being.
With inflation currently at acceptable levels and a less-than-robust economy, further rate cuts are still expected throughout the year, albeit not as quickly as many hope.
Variable-rate mortgages are still an attractive option compared to their fixed-rate counterparts for those comfortable taking on a bit of risk.
The Bank of Canada’s next rate announcement will be on June 4th, 2025, so let’s keep our fingers crossed for another cut of at least 25 bps.
As always, if you have any questions, feel free to reach out.
Mark