The Bank of Canada held its overnight rate at 2.25% on June 10, 2026, a fourth consecutive hold following the April 29 decision. The accompanying Monetary Policy Report kept the growth and inflation outlook broadly unchanged from April, and five of the six major bank economics teams had called the hold correctly going in.

Why the Bank held again

Core inflation measures (CPI-trim and CPI-median) stayed sticky in the mid-2% range through May, above the level the Bank typically wants to see before easing. Five-year Government of Canada bond yields have held above 3%, and the Canadian dollar has stayed soft against the USD — both keep some upward pressure on imported inflation. On the other side, growth has been moderate rather than weak, so there wasn't a strong case for a cut either. A hold split the difference.

What It Means For Your Mortgage

Variable mortgage holders see no change — prime stays at 4.45% at the major banks. Fixed mortgage rates track the 5-year Government of Canada bond yield rather than the overnight rate directly, so they can still move independently between BoC meetings. Run your specific balance and amortization in our mortgage calculator to see how a future move in either direction would change your payment.

What to Do Now

If you're up for mortgage renewal

Most lenders will hold a quoted rate for 90–120 days. Locking in a hold rate now means you keep the lower rate if rates drop before closing, and keep the held rate if they rise. Compare current 5-year fixed and variable options in our mortgage calculator.

If you're shopping GICs

One-year GICs at the challenger banks are running roughly 3.30–3.35%, with five-year terms up to 4.00%. See current GIC rates versus HISA rates.

If you're sitting on cash

Posted HISA rates currently span roughly 1.00% to 2.85% depending on the institution and whether you qualify for a direct-deposit boost. Laddering 1-, 2-, and 3-year GICs locks in a higher return than most HISAs offer — useful if you're parking money for a known goal rather than an emergency fund.

What's Next

The Bank's next scheduled decision is July 29, 2026. With four holds in a row, most bank economists expect that streak to continue unless inflation or growth data breaks clearly in one direction. See our April 29 rate decision recap for the prior meeting.