Hey friends! Here’s the latest from the Bank of Canada (BoC) — and don’t worry, I’ll break it down in plain English.
The big news? The BoC is expected to hold its policy rate in December. That means no surprise rate hikes… at least for now.
Here’s why:
GDP looks good…ish….
Third-quarter GDP bounced back 2.6%, way above expectations. September had a tiny 0.2% gain after August’s dip. On the surface, it sounds like the economy is cruising — but economists warn the headline numbers don’t tell the full story. Domestic demand is basically flat, meaning growth isn’t as strong as it looks.
Why rates are likely staying put.
BMO’s Douglas Porter and TD’s Andrew Hencic think this gives the BoC reason to hit pause. Unless inflation suddenly spikes, there’s little reason for a rate hike anytime soon. The market even reacted a little, with bond yields nudging up — nothing crazy.
But wait… there’s a twist.
Some of the “growth” came from drops in imports — not exactly the kind of growth we’d like to see. Early Q4 data shows momentum slowing, and ongoing trade pressures mean the economy still has some hurdles to clear. So while rates are steady, things are still a bit uncertain.
What this means for you:
🏡 Buying a home? Rates are likely steady — good time to plan your next move.
💰 Refinancing? You’ve got options, but keep an eye on the market — things can change.
Here’s the thing: navigating rates and the economy can feel confusing. That’s where I come in! I shop all lenders — big banks, B-lenders, and more — to make sure your mortgage fits YOU, not the other way around.
So take a breath, stay informed, and let’s make smart moves together.
💡 Pro tip: Want a quick breakdown on how this could affect your mortgage? I’ve got you covered — let’s chat! From Loan to Home — Your Trusted Path to Ownership. 🏡