10/28/2026
Big update for everyone! 📢🇨🇦
The Bank of Canada has increased its key interest rate by 25 basis points to 2.50%, with the Bank Rate now at 2.75% and the deposit rate at 2.45%.
Canada’s economy has shown stronger-than-expected growth, with GDP rising 3.3% in the second quarter and approximately 2% growth indicated for the third quarter. Solid consumer spending, renewed business investment, and stronger exports have supported economic activity. However, unemployment remains around 6.5%, while ongoing U.S. tariffs, elevated energy prices, and global uncertainty continue to present challenges.
Inflation remains a key concern, with CPI hovering around 3% since April and projected to reach approximately 3.5% by the end of 2026. While core inflation remains close to the Bank’s 2% target, persistently high energy prices and rising business costs are creating additional inflationary pressure.
What does this mean for Canadians? 🏡
The rate increase could lead to higher borrowing costs, particularly for homeowners with variable-rate mortgages and buyers considering financing. With inflation expected to remain elevated into 2027, the Bank of Canada has indicated that further rate increases may be necessary, while emphasizing a cautious approach to future decisions.
Whether you're buying, selling, or planning your next move, understanding how interest rates influence the real estate market is more important than ever.
📩 Have questions about what this means for your real estate goals? Connect with Grace Kim today!
