Bank of Canada Rate Announcement Apr 12th 2023

Tanya Toye • April 13, 2023

Bank of Canada maintains policy rate, continues quantitative tightening.


FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

April 12, 2023


The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.


Inflation in many countries is easing in the face of lower energy prices, normalizing global supply chains, and tighter monetary policy. At the same time, labour markets remain tight and measures of core inflation in many advanced economies suggest persistent price pressures, especially for services.


Global economic growth has been stronger than anticipated. Growth in the United States and Europe has surprised on the upside, but is expected to weaken as tighter monetary policy continues to feed through those economies. In the United States, recent stress in the banking sector has tightened credit conditions further. US growth is expected to slow considerably in the coming months, with particular weakness in sectors that are important for Canadian exports. Meanwhile, activity in China’s economy has rebounded, particularly in services. Overall, commodity prices are close to their January levels. The Bank’s April Monetary Policy Report (MPR) projects global growth of 2.6% this year, 2.1% in 2024, and 2.8% in 2025.


In Canada, demand is still exceeding supply and the labour market remains tight. Economic growth in the first quarter looks to be stronger than was projected in January, with a bounce in exports and solid consumption growth. While the Bank’s Business Outlook Survey suggests acute labour shortages are starting to ease, wage growth is still elevated relative to productivity growth. Strong population gains are adding to labour supply and supporting employment growth while also boosting aggregate consumption. Housing market activity remains subdued.


As more households renew their mortgages at higher rates and restrictive monetary policy works its way through the economy more broadly, consumption is expected to moderate this year. Softening foreign demand is expected to restrain exports and business investment. Overall, GDP growth is projected to be weak through the remainder of this year before strengthening gradually next year. This implies the economy will move into excess supply in the second half of this year. The Bank now projects Canada’s economy to grow by 1.4% this year and 1.3% in 2024 before picking up to 2.5% in 2025.


CPI inflation eased to 5.2% in February, and the Bank’s preferred measures of core inflation were just under 5%. The Bank expects CPI inflation to fall quickly to around 3% in the middle of this year and then decline more gradually to the 2% target by the end of 2024. Recent data is reinforcing Governing Council’s confidence that inflation will continue to decline in the next few months. However, getting inflation the rest of the way back to 2% could prove to be more difficult because inflation expectations are coming down slowly, service price inflation and wage growth remain elevated, and corporate pricing behaviour has yet to normalize. As it sets monetary policy, Governing Council will be particularly focused on these indicators, and the evolution of core inflation, to gauge the progress of CPI inflation back to target.


In light of its outlook for growth and inflation, Governing Council decided to maintain the policy rate at 4½%. Quantitative tightening continues to complement this restrictive stance. Governing Council continues to assess whether monetary policy is sufficiently restrictive to relieve price pressures and remains prepared to raise the policy rate further if needed to return inflation to the 2% target. The Bank remains resolute in its commitment to restoring price stability for Canadians.


Information note

The next scheduled date for announcing the overnight rate target is June 7, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 12, 2023.


Read the April 12th, 2023 Monetary Policy Report.


Tanya Toye

Mortgage Broker

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The Rise of Multi-Generational Homebuying

By Tanya Toye • May 23, 2026
As home prices continue to challenge affordability, more families are exploring creative ways to make homeownership possible. One option that has been growing in popularity is purchasing a single-family dwelling together. For some families, this approach can create opportunities that may not have been achievable individually, while also offering practical support across generations. Multi-family homeownership is not a one-size-fits-all solution but, in the right situation, it can work extremely well. Parents helping adult children enter the housing market, siblings purchasing together or families combining resources to care for aging relatives are all examples of scenarios where shared ownership can make sense. In many cases, a single-family dwelling or full duplex tends to be the preferred property type for this arrangement. Whether the property is freehold or leasehold, these options often provide the flexibility, privacy and living space families are seeking. A full duplex, in particular, can offer a balance between shared ownership and independent living, allowing family members to live close together while still maintaining separate spaces and routines. Combining incomes and down payment resources may improve purchasing power and help families qualify for properties that better meet their long-term needs. Shared expenses such as utilities, maintenance, property taxes and mortgage payments can also reduce the financial pressure that many households are currently experiencing. Careful planning required Purchasing property jointly is a major decision and requires careful planning. It’s important for everyone involved to have open conversations about finances, responsibilities, future plans and expectations before moving forward. Questions around ownership structure, exit strategies, inheritance considerations and ongoing costs should all be discussed early in the process. Legal and financial advice can be extremely valuable to ensure everyone understands their rights and obligations. Lenders will also evaluate the overall application differently when multiple borrowers are involved. Income sources, credit history, debt levels and the intended use of the property all play a role in financing approval. Working with you mortgage broker can help families understand available options and how to structure the purchase appropriately. For some families, buying together may provide a practical path toward stability, affordability and long-term wealth building. While it may not be the right fit for everyone, it’s becoming an increasingly common strategy for families looking to support one another and navigate today’s housing market together. Wondering if multi-generational living is right for you? I’m here to help explain all your options. 604-788-8693 | tanya@tanyatoye.ca

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Tanya Toye • May 20, 2026
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.