The Globe and Mail reports in its Friday, June 5, edition that the Bank of Canada is expected to hold interest rates steady at 2.25 per cent in its upcoming decision, keeping variable mortgage rates unchanged. The Globe's unbylined Mortgage Rates column reports that Kevin Fettig, president of CMI Financial, notes that the BOC is facing slowing economic growth and geopolitical tensions that may drive inflation. These factors contribute to the likelihood of maintaining the current rates. A 25-basis-point rate hike is expected by the end of the year, swap market data showed. Earlier in 2026, markets were expecting two rate hikes by year's end. However, the Canadian economy recently posted two straight quarters of declining gross domestic product, which marks a technical recession. That could limit how much the BOC is willing to hike rates. Mr. Fettig also said there are concerns that high oil prices could lead to inflation in other sectors, which is why the BOC could still be forced to raise interest rates. Mr. Fettig said, "For the most part, they're going to stay pretty close to home in terms of where their rates are at this moment."