|
|
|
Still grounded · Decision No. 6
The rate cut is delayed. Again.
|
|
Departures · Ottawa
|
|
The 2026 Rate Cut
|
| Scheduled |
January 2026 |
| Status |
DELAYED · sixth time |
| Next update |
September 2 |
|
|
Travellers waiting on this departure are advised to make other plans.
|
|
|
|
|
Here's the straight version. The Bank of Canada held at 2.25% on Wednesday, the sixth consecutive hold. The line that matters is easy to miss: Governing Council judges the current rate "remains appropriate." Not restrictive. Not on its way down. Appropriate.
The next scheduled decision is September 2. The Bank's own projection doesn't see inflation back near 2% until early 2027. So if a client's plan begins with "once rates come down," their plan now has no start date.
|
|
The status board, in numbers
Six decisions. Zero movement.
|
|
6
|
Consecutive holds at 2.25%. The overnight rate hasn't moved all year.
|
|
|
3.2%
|
CPI in May. The Bank projects inflation returns to about 2% in early 2027.
|
|
|
Sept 2
|
The next date a cut is even possible. Seven quiet weeks from today.
|
|
|
The waiting game
"Let's wait for rates to come down" was a strategy while cuts had a schedule. They don't anymore. Waiting is now the expensive option.
|
|
|
The play for the seven quiet weeks
|
|
|
The parked plan can move now.
The consolidation or renovation your client shelved "until rates drop" doesn't need a cut. Fraction has no monthly payment for up to five years, so the plan runs on equity, not on cash flow.
|
|
|
|
If the cut ever shows up, they can leave for it.
No prepayment penalties after 6 months. A client can hold a Fraction file through the flat stretch and refinance toward cheaper money whenever it finally exists. Waiting inside a funded file beats waiting on the sidelines.
|
|
|
|
An answer within 24 business hours.
Often within the hour. Seven weeks is a long time to leave a file idle. It's also enough time to fund one.
|
|
|
|
|
One-tap poll
When does the first cut actually land?
One tap. We'll read the room in a future issue.
|
|
|
BC · Ontario · Alberta
Fraction Technologies Inc. · FSRA #13439
No monthly payments during the term; interest accrues and is repaid at the end of the term. No prepayment penalties after the first 6 months. All files subject to underwriting; Fraction verifies income on every file. For broker use, not consumer-facing advice. Source: Bank of Canada (July 15, 2026).
|
|