Bank of Canada
NeutralJuly 15, 2026 · Bank of Canada · Rates · Financing · Policy
Monetary Policy Report—July 2026
Canada’s economy has been weak but is showing signs of improvement. Growth is expected to pick up, and inflation is projected to ease to around 2%. Uncertainty remains elevated.
Our take: A 2% inflation target with modest growth recovery signals the BoC may be done cutting rates, which means your mortgage renewal costs are stabilizing—but don't expect aggressive rate relief to boost your exit cap rates.
In your underwriting: Lock in refinancing assumptions now rather than modeling continued BoC cuts; use current 5-year mortgage rates as your baseline for stress scenarios and DSCR calculations.