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Key Takeaways

  • The Bank of Canada has held their policy interest rate, which keeps it at 2.75% as of their latest interest rate announcement.
  • The next interest rate announcement is on Wednesday, June 4, 2025.
  • Talk to an experienced mortgage advisor to understand the announcement’s impact on your mortgage payment or upcoming renewal

Why did the Bank of Canada cut interest rates? 

Commentary from Perch’s CEO and Principal Mortgage Broker, Alex Leduc:

The latest Bank of Canada interest rate announcement occurred on April 16, 2025. The Canadian economy is showing moderate growth, core inflation spiked to 2.7% (from 2.1% the prior month) is well above the 2% target and tariffs are expected to apply upward pressure on inflation for the near future. As a result, the Bank of Canada has paused rate cuts to avoid fueling inflation’s rise any further.

What does this mean for my mortgage with Perch? 

  • For variable rate mortgages (meaning your payments don’t fluctuate as prime rates change): Your existing mortgage payments will remain unchanged. Use our Mortgage Renewal Calculator to get an estimation of what your expected rate and payment will be at your maturity date. If the payment isn’t manageable, connect with your advisor well in advance to look at all options.
  • For adjustable rate mortgages (meaning your payments fluctuate as prime rates change): Your payments will remain unchanged for now, but the outlook shows that a few more cuts from the Bank of Canada are expected throughout 2025 to further reduce your mortgage payments.
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In the chart below, you can see how our 5-year variable rate forecast has changed over time based on the Bank of Canada’s interest rate announcements. (Like what you see? Sign up to get free, personalized mortgage insights and our monthly mortgage outlook!)

An additional 0.75%-1% of cuts is expected for the remainder of 2025, but we then expect a few hikes in 2026 and onwards since we are currently at the expected long-term rate.

Will mortgage rates go up in the next 5 years?

Based on our latest Mortgage Rate Outlook, expect 5-year variable mortgage rates to continue dropping in 2025. We’ll be updating our mortgage rate forecast after every Bank of Canada interest rate announcement – you can subscribe to our mortgage rate forecast for free.

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What is the Bank of Canada interest rate today?

The current Bank of Canada interest rate is 2.75%, with a 0.25% rate cut announced on March 12, 2025.

When is the next Bank of Canada interest rate announcement?

The next scheduled Bank of Canada interest rate announcement is Wednesday, June 4, 2025 at 9:45 AM ET.

What are the interest rate announcement dates in 2025?

There are a total of 8 Bank of Canada interest rate announcements each year. The dates for 2025 are as follows:

  • Wednesday, January 29, 2025
  • Wednesday, March 12, 2025
  • Wednesday, April 16, 2025
  • Wednesday, June 4, 2025
  • Wednesday, July 30, 2025
  • Wednesday, September 17, 2025
  • Wednesday, October 29, 2025
  • Wednesday, December 10, 2025

(Source: Bank of Canada)

The Bank of Canada typically makes their interest announcement at 9:45 AM Eastern Time.

Here’s what else we’re reading:

March Mortgage Outlook  (4 min read time)

Fixed or Variable? How to choose the right mortgage for you (4 min read time)

Mortgage switch vs mortgage renewal (4 min read time)

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