Bank of Canada Holds Rate Steady, But Brokers Disagree on Impact

The Bank of Canada's decision to maintain its overnight lending rate at 2.25 per cent has sparked differing opinions among mortgage brokers in Ontario and British Columbia.

According to Governor Tiff Macklem, this rate will remain steady as the central bank aims to keep inflation close to the 2 per cent target rate.

The decision was made after weighing Canada's economic growth during the second quarter against elevated oil and gas prices and uncertainty tied to U.S. tariffs and Canadian countermeasures.

While the Canadian Mortgage Brokers Association (CMBA) of Ontario sees this stance as a 'steady signal', CMBA British Columbia believes it does not signal stability nor economic conditions that will attract first-time homebuyers into the market.