On June 4, 2025, the Bank of Canada held its overnight policy rate at 2.75%, with the Bank Rate at 3%, and the deposit rate  This follows two consecutive cuts earlier this year from 3.00% in January and 2.75% in March making it a total reduction of 225 basis points since mid‑2024 .

🔍 Why the Bank Held Steady

Despite softer consumer spending and tighter trade conditions particularly due to U.S. tariffs the central bank emphasized caution. Growth remains modest and inflation remains close to the upper end of its comfort zone 

📉 What Economists Predict

According to a Reuters poll, most economists expect the Bank to remain on hold now but plan two more rate cuts by year-end, with a cautious eye on domestic and global economic trends 

🏘️ What This Means for Calgary Buyers & Sellers

For Buyers:

• Lower borrowing costs mean increased monthly affordability.

• More purchasing power even a 0.25% drop in rates could add thousands to your budget.

• It’s a thoughtful time to get pre-approved and secure a strong mortgage option.

For Sellers:

• The potential for future rate cuts may stimulate buyer activity and widen the buyer pool.

• Presently, rates are balanced so homes priced and presented well continue to get interest.

🧭 Looking Ahead

• Early 2026 could see 2.25–2.50% policy rates, based on current forecasts.

• Calgary’s affordability compared to other major markets makes it an attractive option for buyers planning ahead.