Canadian Economy Shows Signs of Growth, Mortgage Rates in Focus

The Canadian economy is showing signs of growth, with Statistics Canada data revealing a stronger-than-expected increase in May. This has reinforced expectations that the Bank of Canada will keep its key interest rate at 2.25 per cent for now.

Mortgage rates are closely tied to this decision, and any changes would affect variable-rate mortgages.

A new wave of US tariffs and trade uncertainty could temper growth in the latter half of the year, complicating the Bank's path forward.

Most traders expect a quarter-point rate hike by the end of the year, according to Bloomberg data.