The Bank of Canada has issued its third rate announcement of 2025 as of April 16, this time with no change to the rate. The rate remains at 2.75%, and Canada’s prime lending rate remains at 4.95%.
What does this mean?
Factors are pushing in both directions on rates. On one hand, inflation is increasing due to the tariffs imposed by the US. On the other hand, there is a lot of uncertainty in the economy which is stalling growth and leaving Canadians hesitant to spend. The Bank of Canada warned that if not for the US tariff situation, they were likely to leave rates as is – so you can see which argument prevailed this month.
The next announcement will come on June 4 so stay tuned.
