On June 4, 2025, the Bank of Canada announced it will hold its key interest rate at 2.75% for the second consecutive decision. The move reflects ongoing caution amid rising inflation and trade uncertainty, particularly involving the United States.
Why the Hold?
According to Bank of Canada Governor Tiff Macklem, the Canadian economy is showing some resilience but remains fragile. Inflation data showed signs of firming, with core inflation (the bank’s preferred measure) coming in stronger than expected. At the same time, a fresh wave of U.S. tariffs—including a doubling of steel and aluminum duties—has added significant uncertainty for Canadian exporters.
“The Canadian economy is softer, but not sharply weaker… we’re proceeding carefully,” said Macklem.
“The trade conflict with the United States remains the biggest headwind.”
What This Means for Homebuyers and Investors
For real estate, this rate hold offers short-term stability. Mortgage rates are likely to remain relatively flat in the near term, which is helpful for both buyers securing financing and sellers trying to attract qualified purchasers. However, the Bank noted that a rate cut could still be on the table if the economy slows and inflation eases.
Key Takeaways:
Interest rate remains at 2.75% — no change for now.
U.S. tariffs creating uncertainty — especially for exports and long-term growth.
Inflation ticking up — but still within the Bank’s target range.
Future rate cuts possible — depending on economic data and global developments.
How to Prepare
If you're considering buying or refinancing, now is a good time to lock in a rate while the market remains steady. If you're selling, stable borrowing costs help keep demand steady—especially in lifestyle markets like Whistler, where buyers are often watching both interest rates and global headlines.
Want to discuss how this impacts your real estate goals?
📩 Get in touch: kyoko@whistlerluxuryhomes.ca
📞 604-967-1238
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