On June 10, 2026, the Bank of Canada announced it was holding its key interest rate at 2.25%, extending a period of stability. This reflects a balance between ongoing inflation pressures and a slower pace of economic growth. Global factors continue to shape the overall outlook. While energy prices have been elevated, a fragile ceasefire in the Middle East has eased pressure on oil prices, with downstream benefits flowing through to broader energy costs. Continued trade uncertainty also remains a key influence. Inflation increased in May with Statistics Canada reporting that the Consumer Price Index rose 3.2% compared to a year earlier and was up from 2.8% in April. As a result, many households continue to feel the impact of higher everyday costs, particularly as energy prices fluctuate and affect the cost of goods and services over time.
The labour market did show signs of improvement. Statistics Canada reported that employment increased by 88,000 in May, bringing the unemployment rate down to 6.6%. This follows softer conditions earlier in the year and suggests some stabilization as we move into the summer months.
Global developments continue to shape the economic environment. Ongoing geopolitical tensions and trade uncertainty are contributing to market volatility and influencing both inflation trends and economic growth.
From a longer-term perspective, periods like this are not unusual. While uncertainty can feel unsettling, financial markets have historically adapted over time as conditions evolve.
Thinking About Switching Lenders At Renewal?
If your mortgage renewal is approaching, deciding on the terms of the mortgage and where to renew can feel like a big decision. But as Alterna Branch Manager and Advice Specialist Natalie Desjardins shared in a recent member webinar, it helps to look at it a little differently:
“Your mortgage isn’t one decision—it’s a series of decisions over time.”
