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BoC Held Again at 2.25% — But a Rate Hike Is Now More Likely Than Not Before Year-End

  Bond markets put the odds of an October 28 hike at 57%. Here's what the big banks are forecasting, what it means for your mortgage payment, and how to think about your next move. MoneySavings.ca · September 17, 2026 The Bank of Canada kept its overnight rate at 2.25% on September 2 — the seventh consecutive hold since the last cut in October 2025. On the surface, nothing changed. Below the surface, everything did. Governor Tiff Macklem's post-decision language was the most hawkish the Bank has sounded in over a year. He flagged that persistently high oil prices (Brent has since touched $107) and new U.S. tariffs — combined with Canada's own $27.6 billion retaliation list — are creating genuine upside risks to inflation. The BoC's August deliberations summary, released September 16, confirmed the Governing Council is now actively weighing a hike, not just a hold. The August CPI reading that came in on September 14 didn't settle anything: headline inflation held at ...
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Safeguarding Your Wealth in a Rising Interest Rate Market


Protect your money

Diversify Your Investments

As interest rates begin to rise, safeguarding your wealth becomes a crucial priority. One effective strategy is to diversify your investments. Relying solely on low-yielding assets may leave your portfolio vulnerable to the impact of increasing interest rates. Instead, consider a balanced approach by spreading your investments across various asset classes, such as stocks, bonds, real estate, and commodities. Diversification helps reduce risk by minimizing the impact of interest rate fluctuations on any single asset. Stocks tend to perform well in a growing economy, which can counteract the adverse effects of rising interest rates on fixed-income investments like bonds. Additionally, allocating a portion of your portfolio to tangible assets like real estate and commodities can act as a hedge against inflation, which often accompanies higher interest rates. Diversification not only safeguards your wealth but also positions your investments to capitalize on market opportunities in a changing interest rate environment.


Refinance Wisely: Safeguarding Your Wealth in Rising Interest Rates

In a rising interest rate environment, refinancing your loans can be a powerful tool to safeguard your wealth. When interest rates climb, borrowing costs increase, which can burden existing loans with higher monthly payments. However, by refinancing strategically, you can take advantage of lower rates and reduce your debt burden. Start by assessing your current loans, such as mortgages, personal loans, or student loans, and compare them to prevailing interest rates. If you find that interest rates have risen significantly, consider refinancing to lock in lower rates before they climb further. Mortgage refinancing, in particular, can yield substantial savings over the long term. By securing a lower interest rate, you not only lower your monthly payments but also potentially shorten the term of the loan, enabling you to build equity faster. Refinancing wisely can free up more disposable income, allowing you to allocate funds to other investments or savings, ultimately protecting and growing your wealth despite the challenging interest rate environment.

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