Mortgage Blog
Bank of Canada Rate Announcement - June 10, 2026
June 10, 2026 | Posted by: Crescent Mortgage Corp.
For the fifth time in a row, the BoC held its target for the overnight rate at 2.25%. This was widely anticipated although recent economic data continues to fuel speculation about what comes next for rates and when.
The conflict in the Middle East is now in its fourth month. Increases in energy prices and disruptions to global supply chains are weighing on global economic growth and stoking inflation. At the same time, little clarity is coming out of the US administration regarding new tariffs and trade policy.
GDP dropped by a weaker than expected 0.1% in the first quarter as consumer spending grew but government spending unexpectedly declined. Business investment remained weak and the housing market continued its decline. Recent data suggests that growth will resume in the second quarter but, even with some rebound, the economy is expected to remain soft.
CPI inflation rose in April, reaching 2.8% driven by higher oil prices and the impact of the elimination of the consumer carbon tax. To date there has been limited evidence of broad-based pass-through of higher energy prices to other consumer prices. Measures of core inflation have dropped down to around 2%.
Economic activity in Canada remains weak and uncertainty about US trade policy persists. The BoC will not let higher energy prices become persistent inflation
The next interest rate announcement is scheduled for July 15, 2026.