The Bank of Canada held its policy rate at 2.75% for the second consecutive time, citing 'unusual uncertainty' around inflation and continuing trade tensions with the United States. This decision complicates mortgage planning for homeowners and prospective buyers, and the article also discusses a proposed GST rebate for first-time homebuyers and the downsides of downsizing.
Steady interest rate complicates mortgage math, the Home of the Week and more top real estate stories
Business
AI Summary
TL;DR: Key points with love ❤️The Bank of Canada held its policy rate at 2.75% for the second consecutive time, citing 'unusual uncertainty' around inflation and continuing trade tensions with the United States. This decision complicates mortgage planning for homeowners and prospective buyers, and the article also discusses a proposed GST rebate for first-time homebuyers and the downsides of downsizing.
Trending- 1 Bank of Canada holds policy rate at 2.75% for second consecutive time
- 2 Department of Finance announces proposed GST rebate for new homes
- 3 Trump's global trade war continues to create uncertainty
- Complicates mortgage math for homeowners and prospective homebuyers
- Homeowners facing hefty mortgage renewal increases are not helped
- First-time homebuyers remain on the sidelines
- Proposed GST rebate may not help in expensive markets like Toronto and Vancouver, potentially driving up prices elsewhere and benefiting investors
- Increased rental vacancies in Vancouver but affordability remains a distant dream for lower-income households
- Uncertainty due to Trump's trade war impacts buyer confidence
What: The Bank of Canada held its key interest rate steady at 2.75%.
When: This week (June 5, 2025)
Where: Canada
Why: The Bank of Canada cited 'unusual uncertainty' around inflation and continuing trade tensions with the United States.
How: The Bank of Canada made a policy decision to maintain the current interest rate.