Jaspreet Dhugga

BoC holds rates steady
On March 18, 2026, the Bank kept the overnight rate at 2.25%, leaving prime at 4.45%.
The benchmark has stayed unchanged since October 2025, after the Bank’s nine-cut series ended.
Soft 2025 growth and a sluggish job market supported the hold; inflation stayed below 2% at 1.8%.
The Bank cited downside growth risks, but warned inflation risks ↑ with higher energy prices amid conflict and tariffs.
Variable-rate borrowers see no payment change; fixed rates faced upward pressure as bond yields ↑ since February.
Rate stability also supports savers: GICs and high-interest savings accounts tied to prime won’t change for now.
I’m seeing Canada’s central bank keep rates steady while balancing weak economic momentum against new inflation risks. That stability matters for variable borrowers and savers, even as fixed-rate pressure builds.

Bank of Canada Interest Rate Decision Explained

Canada lenders turn active
A survey of 47 lenders showed office-loan budget intentions rebounded in 2026, the first rebound in 6 yr.
Multifamily stayed top for lender budgets; retail exposure interest persisted, while industrial sentiment weakened and land looked worst.
Office lenders flagged aging, obsolete buildings needing major investment; refinancing often meant renewals at maturity with higher proceeds.
Lender appetite rankings shifted: Vancouver led for first time in a decade, Toronto second; Calgary rose, Hamilton fell.
Challenges centered on economic weakness; most lenders planned active bidding, with many aiming to raise origination volumes.
I’m seeing Canadian commercial real estate lenders sounding more willing to lend in 2026, with renewed interest in offices and continued focus on apartments. Competition for loans looks stronger, even as economic worries linger.