The Bank of Canada will release its final interest rate update of the year next Wednesday.
Canada’s central bank cut its key interest rate twice this fall — from 2.75% to 2.5% in September, and then to 2.25% in October.
Experts say the bank will likely keep the rate where it is for the rest of 2025. Inflation is still above the Bank’s 2% target, but signs show that price increases are slowing. That makes another rate cut unlikely, but a hike also seems unnecessary.
The housing market is still quieter than last year, but more buyers have been returning over the past six months. Home prices remain stable, and higher inventory has made conditions easier for buyers.
Mortgage rates, especially variable rates, are not expected to drop soon, although current rates are better than they’ve been since 2022.
The Bank of Canada’s last interest rate announcement of 2025 is coming on Wednesday, December 10.
