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Lock In or Stay Variable? What Every Canadian Homeowner Must Decide Before April 29

   Bank of Canada headquarters, Ottawa. Overnight rate held at 2.25% since October 2025. Next decision: April 29, 2026.  The Bank of Canada has held its rate at 2.25% for three straight decisions — but with inflation creeping back up, a Middle East conflict pushing oil prices, and over one million mortgage renewals on the horizon, the stakes of getting this wrong have never been higher. The Canadian Money Brief April 25, 2026 6 min read THE CANADIAN MONEY BRIEF BANK OF CANADA 2.25% 2.25% POLICY RATE HELD SINCE OCT. 2025 · THIRD CONSECUTIVE HOLD NEXT DECISION: APR. 29, 2026 If your mortgage is coming up for renewal in the next six to eighteen months, the question keeping you up at night is probably this: do I lock in a fixed rate now — or do I ride out a variable rate and hope the Bank of Canada does something helpful? It's the right question to be asking. And right now, the answer is more complicated — and more consequential — than it has been in years. The Bank of Canada...
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C$ Climbs to 6-Day High on Fed Rate Cut Forecast

 


In a positive turn of events, the Canadian dollar (C$) has strengthened to a six-day high against its U.S. counterpart. Investors are celebrating the Federal Reserve’s decision to stick with its interest rate-cutting forecast for 2024.

Here are the key points:

  • The loonie (as the Canadian dollar is affectionately known) is trading 0.5% higher at 1.35 to the U.S. dollar, or 74.07 U.S. cents. It touched its strongest intraday level since last Thursday at 1.3491.
  • The Federal Reserve held interest rates steady, but policymakers indicated they still expect to reduce rates by three 25-basis-point cuts by the end of 2024. This is despite slower-than-expected progress toward the U.S. central bank’s 2% inflation target.
  • Wall Street rallied, U.S. Treasury yields fell, and the U.S. dollar lost ground against a basket of major currencies.
  • The Bank of Canada also expects to ease rates this year, as revealed in the minutes from the central bank’s policy meeting earlier this month. However, policymakers remain divided over when there will be enough evidence that conditions are right for cuts.
  • The decline in the price of oil, one of Canada’s major exports, had little impact on the loonie. U.S. crude oil futures settled 2.1% lower at $81.68 a barrel, giving back some recent gains.
  • Canadian government yields fell across the curve, tracking moves in U.S. Treasuries. The 10-year yield was down 3.2 basis points at 3.492%, extending its pullback from the highest intraday level in one month at 3.624% on Tuesday.

In summary, the Canadian dollar’s ascent reflects optimism about the Fed’s commitment to rate cuts, while the Bank of Canada keeps a close eye on economic conditions. 


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