As we move further into 2026, the Bank of Canada (BoC) appears committed to keeping its policy rate steady at 2.25%. A recent Reuters poll of 41 economists confirms that a vast majority expect rates to remain unchanged for the remainder of the year. For those navigating the Greater Toronto Area housing market, this signals a period of relative stability despite external pressures like energy price volatility and ongoing USMCA trade negotiations.
While some market speculation suggests potential rate hikes later in the year, experts argue that the bar for such a move remains high due to softening core inflation and a cooling labour market. With headline inflation at 2.4%—well within the Bank’s target range—Governor Tiff Macklem is prioritizing economic flexibility over premature tightening. For prospective buyers and homeowners facing renewals, this ‘wait-and-see’ approach offers a predictable landscape. Read the full analysis at the link below for more insights.
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