Canadian Mortgage Trends ~ March 26th, 2026
Bank of Canada senior deputy governor Carolyn Rogers was in Brandon, Man., on Thursday speaking to the city’s chamber of commerce about how the bank is grappling with a series of economic shocks.
“Canadians have faced a lot of economic upheaval over the past five years, and the next five may not be much calmer,” Rogers said in prepared remarks.
She said the oil price shock from the Iran war is squeezing consumers and businesses, but it’s still too soon to say what the conflict will mean for growth and inflation in the coming months.
The Bank of Canada held its benchmark interest rate steady at 2.25% for a third consecutive time last week. Officials signalled at the time that they’d look through a near-term inflation spike from higher energy costs but would act if necessary to make sure price pressures from the conflict around Iran don’t become entrenched.
Financial markets shifted late last week to favour interest rate hikes from the Bank of Canada and other central banks later this year amid uncertainty in the Middle East, though many economists argue the slow recovery in the Canadian economy doesn’t merit higher rates right now.
Rogers acknowledged in her speech that the Bank of Canada underestimated how persistent inflation would be after the COVID-19 pandemic. The central bank had become accustomed to decades of low, stable inflation and its models underestimated the extent of the supply shock on prices, she said.
Click here to read the full article.
