First Rate Decision of the Year: Bank of Canada Holds at 2.25%

This week, the Bank of Canada (BoC) held its key interest rate at 2.25%

The Bank of Canada (BoC) has delivered its first interest rate announcement of the year, choosing to hold its key policy rate at 2.25%.

As expected, the Bank of Canada held interest rates at 2.25%. While not as impactful as a rate cut, a hold is often an early turning point. Signs of improved buyer engagement are beginning to surface as confidence gradually returns and expectations start to adjust. The question now is whether this marks the beginning of a broader shift in market conditions.

Fraser Valley and Entry-Level Market Conditions

Outside of core urban centres, sensitivity to borrowing costs often plays a larger role in buyer behavior. In the Fraser Valley, stable rates may help sustain interest in entry and mid-range homes. Townhomes and single-family properties in communities such as Langley, Abbotsford, and Chilliwack may continue to attract attention as buyers assess affordability with greater clarity.

Consistent policy rates will support more predictable finance calculations for investors, which can be particularly meaningful for presale projects and long-term holdings.

Final Thoughts

The Bank of Canada’s decision to hold its policy rate at 2.25% in its first 2026 announcement reflects a cautious but steady approach to monetary policy. The focus remains on balancing inflation control with support for economic activity amid global uncertainty.

Today’s decision offers a more predictable environment for planning for homeowners, prospective buyers, realtors, and developers. With rates on hold, this moment presents an opportunity to review mortgage options, reassess budgets, and consider market timing as conditions evolve.

Overall, the rate hold brings a degree of certainty at the start of the year, a foundation from which confidence may continue to build throughout 2026.