Bank of Canada Rate Announcement - Good News

Good news last week from the Bank of Canada. It lowered the Bank of Canada rate by .25%. This is most likely to also produce a drop in the Prime Lending Rate offered by financial institutions to those borrowers with variable rate mortgages. The current prime is 4.75% so today's announcement should bring that down to 4.5%. The Bank of Canada factors in employment numbers, the inflation rate and the current trade tensions with the US to make its decision.

We have one more rate announcement before the end of the year (December 10, 2025). At this point it is too early to tell what direction the Bank of Canada is leaning.  A lot can happen between now and then to influence its decision.