In a widely anticipated move, the Bank of Canada held its benchmark overnight rate steady at 2.25% during its December 10, 2025 announcement, signalling confidence that inflation remains anchored near the 2% target amid improving economic growth and robust job numbers. This decision, backed by unanimous economist consensus, caps a prolonged easing cycle and eases pressure on households renewing mortgages at lower rates, while tempering expectations for further cuts through at least 2027. Markets reacted calmly, with Canadian equities edging higher and the loonie stabilizing against the U.S. dollar, as the central bank emphasized vigilance on trade risks and persistent core inflation pressures in its accompanying statement.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

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