Bank of Canada June 10 Decision: Why Rates Likely Hold Despite Technical Recession—and What It Means for Mortgage Timing

The Bank of Canada is scheduled to announce its next interest rate decision on Wednesday, June 10, 2026, with markets widely expecting the central bank to maintain its overnight rate at 2.25%. This would mark the fifth consecutive hold since October 2025, following the April decision where the governing council cited ongoing uncertainty from the US-Iran conflict and US trade tariffs. Canada has officially entered a technical recession, with GDP contracting over the past two quarters—the first such decline since 2020. However, mortgage experts Clay Jarvis of Nerdwallet Canada and Penelope Graham of Ratehub.ca indicate that the recession alone is unlikely to prompt a rate cut, given the countervailing inflationary pressure from spiking oil prices tied to the Strait of Hormuz closure.