Bank of Canada Holds Interest Rates

The Bank of Canada maintained its policy rate at 2.25% today, March 18th, for the third consecutive time.

What just happened?

Today,  Wednesday, March 18, 2026, the Bank of Canada held its key interest rate at 2.25%.

• This is the third rate hold in a row
• Most experts expected this
• The Bank is not rushing to raise or cut rates right now. They are in “wait and see” mode.

"The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy. The breadth and duration of the conflict, and hence its economic impacts, are highly uncertain."

How this affects your mortgage

Here’s how the decision flows down to you:

1. Bank of Canada rate
   Stayed at 2.25%
   This is the starting point for interest rates.
2. Bank prime rate
   Because of the hold, most banks’ Prime Rate is staying put at 4.45%
3. What this means for you

• Variable-rate mortgage holders:
  👉 No change to your rate or payment
• Line of credit (HELOC or unsecured):
  👉 No change
• Fixed-rate mortgage:
  👉 No change (Fixed rates follow the bond market, not the Bank of Canada)

Why did the Bank hold rates?
In simple terms, the economy is slowing, but inflation risks have now increased due to higher energy prices.

Most economists now expect rates to stay about where they are through most of 2026.

What this means for different borrowers

Variable-rate holders

• Your payment stays the same
• You’ve benefited from past rate cuts
• Stay variable if you’re comfortable with ups and downs
• Lock into fixed if you want payment certainty

Mortgage renewals (next 6–12 months)

• Do not wait or auto-renew
• Start early — locking in options now matters

Fixed-rate holders above 5%

• You may have refinance options
• In some cases, this could mean meaningful monthly savings

Important reminders

• Fixed mortgage rates follow bond yields, not the Bank of Canada rate changes
• Fixed rates could start to rise later in 2026 if markets expect future increases
• Big rate drops are unlikely in the near term

What’s next?

The next scheduled Bank of Canada rate announcement is April 29, 2026.

One last important note

If your mortgage is coming up for renewal, or you’re thinking about buying, refinancing, or just want to understand your options, please reach out.

A short conversation now can save a lot of money and stress later.

Read the full Bank of Canada press release here.