Indran Kunam Level 2

Rates on hold: All six major banks expect the BoC policy rate to stay at 2.25% through 2026.

No near-term cuts: Stable core inflation limits justification for additional easing.

Borrowing costs steady: Variable mortgage and HELOC rates likely remain broadly unchanged.

Housing impact: Rate stability supports affordability and calmer housing market conditions.

Big Six Banks Rate Outlook 2026

Inflation slowed to 2.2%, gas dropped, food and home prices creep up slower.

Weak economy signals could nudge BoC toward rate cuts this year. 

For Canada, inflation is forecast to average 2.5% this year.

That’s not weak enough for the Bank of Canada to cut rates.