The latest announcement from the Bank of Canada on March 18, 2026, confirmed that the overnight lending rate will remain unchanged at 2.25% (PRIME LENDING RATE 4.45%).

This decision comes at a time when inflation has been relatively stable near the Bank’s 2% target, but global uncertainty — particularly rising oil prices — is creating potential inflation risks moving forward.

What This Means for Calgary Real Estate

For the Calgary market, a rate hold is generally positive news.

1. Stability for Buyers
Holding the rate means variable mortgage rates and borrowing costs are not increasing. This gives buyers more confidence and predictability when entering the market.

2. Continued Activity for Sellers
With rates unchanged, buyer demand is expected to remain steady. We are not seeing the sharp slowdowns typically associated with rate hikes.

3. A Balanced Market Environment
Unlike the volatility seen over the past few years, this decision supports a more balanced market — something Calgary has been trending toward.

The Big Watch-Out: Future Rate Hikes

While rates are on hold today, the Bank of Canada has made it clear it is prepared to raise rates if inflation rises again — particularly due to higher oil prices.

Markets are already anticipating the possibility of a rate increase later in 2026 if inflation pressures persist.

What Should Buyers and Sellers Do?

Buyers:
This window of stability is an opportunity. Waiting could mean facing higher borrowing costs later in the year.

Sellers:
You’re still in a strong position. Buyer demand remains intact, and pricing remains supported by stable financing conditions.

Final Thoughts

This rate hold signals a “wait and see” approach from the Bank of Canada — and for Calgary real estate, that translates into a steady and active market.

If you’re considering making a move in 2026, timing and strategy will be key — especially with the potential for rate changes later this year.