Welcome to this Penthouse in the heart of Kitsilano. Just steps to the vibrant West 4th avenue and all its cafes, boutiques, grocery stores, restaurants and pretty much anything you wnt, including a short walk to Kits Beach and pool. 2 bedrooms and 2 bath home with views to the North Shore, 2 parking and a locker.  Great for upsizers or downsizers.

The Bank of Canada has just lowered its policy rate by 25 basis points to 2.50% — the lowest in three years. This move is big news for our real estate market here in Vancouver. Let’s look at what’s driving the cut and, more importantly, what it means if you’re buying or selling.

Why the Rate Was Cut

• Slowing economy: GDP slipped ~1.6% in Q2.

• Job market softening: Rising unemployment is a concern.

• Inflation cooling: Still a touch high at the core, but trending down.

• Global uncertainties: Tariffs and trade pressures are weighing on growth.

What It Means for Buyers

• Lower borrowing costs: Variable-rate mortgages and loans tied to prime should ease.

• Fixed-rate relief: Fixed mortgages may dip as bond yields adjust.

• More purchasing power: Lower payments could let you aim higher or simply buy with more comfort.

• Increased competition: More buyers entering the market means hot listings could see multiple offers — being pre-approved is key.

What It Means for Sellers

• Bigger buyer pool: Lower rates invite more demand.

• Quicker sales: Homes may move faster, especially in desirable neighbourhoods.

• Stronger pricing power: More buyers can mean stronger offers — though local inventory levels matter.

• Great timing to move up: If you’re selling and buying again, lower rates make upgrading more attractive.

A Few Things to Keep in Mind

• This is a modest cut — it helps, but affordability challenges remain.

• Fixed rates don’t always move right away. Locking in now could be a smart hedge.

• Rate cuts can reverse if inflation heats up or the economy worsens.

• Every market is different — what we’re seeing in Vancouver might not mirror other regions.

This rate cut creates momentum. Whether you’re thinking of buying, selling, or simply watching the market, it’s a great time to explore your options.

If you’d like to know how this change impacts your specific situation, let’s connect — I’d be happy to walk you through the numbers.

Wendy McLeod, Vancouver Realtor — your trusted guide in every market.

Bank of Canada lowers policy rate to 2½%

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

September 17, 2025

Today, the Bank of Canada lowered the overnight policy rate by 25 bps to 2.5% as was widely expected. Following yesterday's better-than-expected inflation report, the Bank believes that underlying inflation was 2.5% year-over-year.

Through the recent period of tariff turmoil, the Governing Council has closely monitored the risks and uncertainties facing the Canadian economy. Three developments triggered the Bank's rate cut. Canada's labour market softened further. Upward pressure on underlying inflation has diminished, and there is less upside to risk to future inflation with the removal of most retaliatory tariffs by Canada. 

Considerable uncertainty remains. However, with a weaker economy and less upside risk to inflation, the Governing Council deemed that a reduction in the policy rate was appropriate to better balance the risks going forward.

"The Bank will continue to assess the risks, look over a shorter horizon than usual, and be ready to respond to new information."

Today's press release suggests that the global economy has slowed in response to trade disputes. In the US, business investment has been substantial, primarily driven by expenditures on Artificial Intelligence. However, consumers are cautious, and employment gains have slowed. It is nearly a certainty that the Federal Reserve will lower its overnight policy rate this afternoon. 

"Growth in the euro area has moderated as US tariffs affect trade. China's economy held up in the first half of the year, but growth appears to be softening as investment weakens. Global oil prices are close to their levels assumed in the July Monetary Policy Report (MPR). Financial conditions have continued to ease, with higher equity prices and lower bond yields. Canada's exchange rate has been stable relative to the US dollar."

Canada's economy contracted in the second quarter, posting a growth rate of -1.6%. Exports fell by 27% in Q2 following a surge in exports in advance of tariffs in Q1. Business investment also fell in Q2. "In the months ahead, slow population growth and the weakness in the labour market will likely weigh on household spending."

Employment has declined in the past two months. "Job losses have largely been concentrated in trade-sensitive sectors, while employment growth in the rest of the economy has slowed, reflecting weak hiring intentions. The unemployment rate has moved up since March, hitting 7.1% in August, and wage growth has continued to ease."

Bottom Line

The Bank of Canada was pretty tight-lipped about future rate cuts, but given the current trajectory, we expect another rate cut when they meet again this fall. The next BoC decision date is October 29, and the central bank wraps up the year on December 10. We expect at least one more rate cut this year, ending the year with a policy rate of 2.0%-2.25%. This should help boost interest-sensitive spending, most particularly housing, where there is considerable pent-up demand.

The Bank will move cautiously, but with the Fed cutting rates again later this year, this gives the BoC cover. While some have questioned the Bank's easing in the face of 3% core inflation, other inflation measures suggest that underlying inflation is roughly 2.5%. The economic and labour market slowdown bodes well for another rate cut. 

Traders in overnight swaps continue to price in another cut from the central bank this cycle, and put the odds at about a coin flip that they'll ease again in October.

The central bank's communications suggest that while it has resumed monetary easing to support the ailing economy, it is leery of cutting interest rates too quickly, given the potential inflation risks posed by the surge in global protectionism and tariffs.