The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally. Instead, the April Monetary Policy Report (MPR) presents two scenarios that explore different paths for US trade policy. In the first scenario, uncertainty is high but tariffs are limited in scope. Canadian growth weakens temporarily and inflation remains around the 2% target. In the second scenario, a protracted trade war causes Canada’s economy to fall into recession this year and inflation rises temporarily above 3% next year. Many other trade policy scenarios are possible. There is also an unusual degree of uncertainty about the economic outcomes within any scenario, since the magnitude and speed of the shift in US trade policy are unprecedented.

Global economic growth was solid in late 2024 and inflation has been easing towards central bank targets. However, tariffs and uncertainty have weakened the outlook. In the United States, the economy is showing signs of slowing amid rising policy uncertainty and rapidly deteriorating sentiment, while inflation expectations have risen. In the euro area, growth has been modest in early 2025, with continued weakness in the manufacturing sector. China’s economy was strong at the end of 2024 but more recent data shows it slowing modestly.

Financial markets have been roiled by serial tariff announcements, postponements and continued threats of escalation. This extreme market volatility is adding to uncertainty. Oil prices have declined substantially since January, mainly reflecting weaker prospects for global growth. Canada’s exchange rate has recently appreciated as a result of broad US dollar weakness.

In Canada, the economy is slowing as tariff announcements and uncertainty pull down consumer and business confidence. Consumption, residential investment and business spending all look to have weakened in the first quarter. Trade tensions are also disrupting recovery in the labour market. Employment declined in March and businesses are reporting plans to slow their hiring. Wage growth continues to show signs of moderation. 

Inflation was 2.3% in March, lower than in February but still higher than 1.8% at the time of the January MPR. The higher inflation in the last couple of months reflects some rebound in goods price inflation and the end of the temporary suspension of the GST/HST. Starting in April, CPI inflation will be pulled down for one year by the removal of the consumer carbon tax. Lower global oil prices will also dampen inflation in the near term. However, we expect tariffs and supply chain disruptions to push up some prices. How much upward pressure this puts on inflation will depend on the evolution of tariffs and how quickly businesses pass on higher costs to consumers. Short-term inflation expectations have moved up, as businesses and consumers anticipate higher costs from trade conflict and supply disruptions. Longer term inflation expectations are little changed.

Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Our focus will be on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. This means we will support economic growth while ensuring that inflation remains well controlled.

Governing Council will proceed carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. 

Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war. What it can and must do is maintain price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is June 4, 2025. The Bank will publish its next MPR on July 30, 2025.

Don't Forget To Turn The Clocks 1 Hour Ahead Sunday!

When priming your home for sale there are some definite missteps you can make if you just “wing it,” which can affect the sale of your home. So, to prevent this from happening, read on for staging mistakes to avoid.

• Hodge-podge of styles — Maintain a cohesive style throughout your home to create a harmonious “look and feel.”

• Personal and bold — Put away your personal photos and mementos and keep your home décor neutral. Buyers want to imagine themselves living in the home, so those personal items can be distracting.

• Simple repairs or updates neglected — Repaint dull or chipped paint and update outdated light fixtures or décor.

• Unprofessional photos — Professionally taken photos are well worth the investment as they will capture the attention of buyers quicker than poorly taken or poor quality photos.

• Layout and size of furniture — If you have a massive sectional occupying most of your living room, it’s going to make the room appear much smaller. If you have room, keep some space between the furniture and the walls to create an illusion of spaciousness.

• Clutter — Perhaps obvious, but those various coloured shampoo bottles in the bathtub and small appliances on the counter create an immediate eyesore for prospective buyers. Declutter and find a home to hide those unsightly items.

• Too little or too much lighting — Strike the right balance using soft, layered lighting throughout your home.

• Grungy linens — It doesn’t have to cost much to refresh your bed linens and towels that will be on display, and it's worth the difference it makes.

• Unpleasant scents — We become accustomed to the familiar smell of our home over time, but even if you think your home smells pleasant, have a friend come over to do the “smell test” and get an outside opinion.

Avoid these common staging mistakes by working with our expert real estate team! We provide professional guidance and staging resources to help your home shine, attract buyers, and sell faster.

Let’s get your home market-ready the right way!

1 - Skipping Pre-Approval
Pre-approval is like your golden ticket in the home-buying process. It tells you exactly how much you can afford, saving you from falling in love with homes outside your budget. Plus, it shows sellers you’re serious, which can give you an edge in competitive markets. Skipping this step might lead to wasted time or, worse, heartbreak when you realize your dream home is out of reach.

2 - Focusing Only On The Price
The list price is just one piece of the puzzle. There are other costs to consider, like property taxes, homeowners’ insurance, utility bills, maintenance, and HOA fees (if applicable). Ignoring these costs could leave you stretched too thin financially. A home might seem affordable at first glance but could become a burden once you factor in all the hidden expenses.

3 - Overlooking Home Inspections
A home inspection is your safety net—it uncovers potential issues like structural problems, faulty wiring, or plumbing leaks. While it may seem tempting to skip it to save time or money, doing so could cost you thousands down the road. Inspections give you peace of mind and negotiating power if issues are uncovered.

4 - Letting Emotions Take Over
It’s easy to get swept up in the excitement of finding a beautiful home, but decisions driven solely by emotion can lead to regret. That charming house might not meet your long-term needs or fit your lifestyle. By staying practical, you ensure the home you choose is not only beautiful but also functional and a good investment.

5 - Not Using a Realtor
Buying a home is a complex process with many moving parts—negotiations, paperwork, inspections, and more. A skilled realtor is your guide, advocate, and problem-solver. They know the market, can spot red flags, and negotiate on your behalf. Without one, you might miss out on key opportunities or end up paying more than necessary.

Pro Tip:   We're here to make your home-buying experience smooth and successful. Whether you’re buying your 1st home or your 5th, let’s chat! We'll guide you through every step, answer your questions, and help you avoid these pitfalls.

Divorcing & selling your marital home is an emotional time but having a real estate agent who is experienced working with divorcing couples can help. Consider the following:

• We are experienced in being an objective third party to help with decisions during an emotional time.

• We are knowledgeable in different divorce situations, such as one person buying out the other.

• We have mediation skills for disagreements about home selling decisions and property division, which can lower legal bills, leading to a quicker sale.

• We have knowledge of legal and tax implications related to divorce and selling the matrimonial home and can ensure all paperwork is handled correctly.

• We know how to market the home and will maintain confidentiality about the personal circumstances of their clients. For example, the home must look like the couple is together. If prospective buyers have any indication of a divorce sale, they may make a lowball offer thinking the sellers are desperate to sell quickly.

Divorce is complicated—choosing the right realtor doesn’t have to be. Let us guide you with expertise, discretion, and care!

The Bank of Canada today reduced its target for the overnight rate to 3%, with the Bank Rate at 3.25% and the deposit rate at 2.95%.1 The Bank is also announcing its plan to complete the normalization of its balance sheet, ending quantitative tightening. The Bank will restart asset purchases in early March, beginning gradually so that its balance sheet stabilizes and then grows modestly, in line with growth in the economy.2

Projections in the January Monetary Policy Report (MPR) published today are subject to more-than-usual uncertainty because of the rapidly evolving policy landscape, particularly the threat of trade tariffs by the new administration in the United States. Since the scope and duration of a possible trade conflict are impossible to predict, this MPR provides a baseline forecast in the absence of new tariffs.

In the MPR projection, the global economy is expected to continue growing by about 3% over the next two years. Growth in the United States has been revised up, mainly due to stronger consumption. Growth in the euro area is likely to be subdued as the region copes with competitiveness pressures. In China, recent policy actions are boosting demand and supporting near-term growth, although structural challenges remain. Since October, financial conditions have diverged across countries. US bond yields have risen, supported by strong growth and more persistent inflation. In contrast, yields in Canada are down slightly. The Canadian dollar has depreciated materially against the US dollar, largely reflecting trade uncertainty and broader strength in the US currency. Oil prices have been volatile and in recent weeks have been about $5 higher than was assumed in the October MPR.

In Canada, past cuts to interest rates have started to boost the economy. The recent strengthening in both consumption and housing activity is expected to continue. However, business investment remains weak. The outlook for exports is being supported by new export capacity for oil and gas.

Canada’s labour market remains soft, with the unemployment rate at 6.7% in December. Job growth has strengthened in recent months, after lagging growth in the labour force for more than a year. Wage pressures, which have proven sticky, are showing some signs of easing.

The Bank forecasts GDP growth will strengthen in 2025. However, with slower population growth because of reduced immigration targets, both GDP and potential growth will be more moderate than was expected in October. Following growth of 1.3% in 2024, the Bank now projects GDP will grow by 1.8% in both 2025 and 2026, somewhat higher than potential growth. As a result, excess supply in the economy is gradually absorbed over the projection horizon.

CPI inflation remains close to 2%, with some volatility due to the temporary suspension of the GST/HST on some consumer products. Shelter price inflation is still elevated but it is easing gradually, as expected. A broad range of indicators, including surveys of inflation expectations and the distribution of price changes among components of the CPI, suggests that underlying inflation is close to 2%. The Bank forecasts CPI inflation will be around the 2% target over the next two years.

Setting aside threatened US tariffs, the upside and downside risks around the outlook are reasonably balanced. However, as discussed in the MPR, a protracted trade conflict would most likely lead to weaker GDP and higher prices in Canada.

With inflation around 2% and the economy in excess supply, Governing Council decided to reduce the policy rate a further 25 basis points to 3%. The cumulative reduction in the policy rate since last June is substantial. Lower interest rates are boosting household spending and, in the outlook published today, the economy is expected to strengthen gradually and inflation to stay close to target. However, if broad-based and significant tariffs were imposed, the resilience of Canada’s economy would be tested. We will be following developments closely and assessing the implications for economic activity, inflation and monetary policy in Canada. The Bank is committed to maintaining price stability for Canadians.

Getting ready to move this winter? While it may not be as easy a move as in other seasons, with a little preparation you can accomplish a move that goes off without a hitch. For some helpful tips, read on.

• Be prepared to be flexible – Check the weather in the days leading up to your move. If a storm is forecasted for your moving day, consider rescheduling your move date. Get any pre-move errands completed in advance of your move, so you don’t get stuck trying to accomplish them in bad weather at the last minute.

• Prepare both homes for winter moving – Ensure both your old and new homes have clear, wide paths for moving, plastic sheeting to protect floors, and if it will be dark during any part of your move, check that the exterior lighting works, and consider headlamps.

• Protect belongings –Temperature changes from the warmth of your home to the cold of the moving truck can cause items like glass to break and electronics to malfunction, so secure these items according to the manufacturer’s instructions and have them loaded onto the truck last or transport them in your own vehicle to keep a closer eye on them.

• Organize utilities – Schedule utility hook-up at your new home before you move so you aren’t stuck without the ability to control indoor temperatures in the height of winter.

• Prepare your vehicle – Especially if you are making a long-distance move, make sure your vehicle has been serviced recently and is stocked with gas, washer fluid, first aid and emergency kits, and blankets.

• Show your movers some appreciation – A warm drink and something to eat for your movers will be a nice gesture to show you care.

Don’t let Mother Nature make moving more stressful than it needs to be, and plan ahead if you have a winter move coming up.

Instead of tackling your home room by room, approach decluttering by focusing on specific categories of items. This method allows you to see all items of the same type at once, helping you make better decisions about what to keep and what to let go. Here's how to do it effectively:

1. Start Small: Begin with less emotionally charged categories like clothes or books before moving on to sentimental items like photos or keepsakes.

2. Gather Everything Together: Collect all items in a category from every room. For example, if you’re decluttering clothes, bring every piece of clothing from closets, dressers, storage bins, and even the laundry. Seeing everything in one place gives you a clear picture of how much you actually own.

3. Sort and Assess: Go through each item one by one. Ask yourself questions like:

   • Do I use this regularly?
   • Does this bring me joy or serve a purpose in my life?
   • Is this a duplicate or unnecessary?

4. Create Clear Piles:

   • Keep: Items you love, use, and truly need.
   • Donate: Items in good condition that no longer serve you but could benefit someone else.
   • Recycle: Items that can’t be donated but can be repurposed.
   • Trash: Damaged items that can’t be reused or recycled.

5. Store Strategically: Once you've decided what to keep, organize those items in a way that’s easily accessible and logical for your lifestyle. Use storage bins, drawer organizers, or labeled containers to keep everything neat.

6. Move Methodically Through Categories: Follow a general order for decluttering categories, such as:

   • Clothes
   • Books
   • Papers
   • Miscellaneous items (e.g., kitchen tools, electronics)
   • Sentimental items

7. Set Limits: To prevent clutter from building up again, decide on limits for how much of each category you’ll keep. For example:

   • A single bookshelf for books
   • One drawer for kitchen gadgets
   • A small box for sentimental items

8. Reflect on What You’ve Learned: As you declutter each category, take note of patterns in your purchasing or holding habits. This can help you avoid accumulating unnecessary items in the future.

By decluttering by category, you simplify the process and ensure a thorough, organized approach to your home. It’s an empowering way to create a space that reflects what you truly value!