In his latest op-ed in The Hub, Theo Argitis argues that Canadians hoping for lower interest rates—especially in the embattled Toronto real estate market—are likely to be disappointed, as the Bank of Canada appears more concerned about inflation risks than economic stimulus. While housing advocates were vocal ahead of Wednesday’s rate decision, their pleas were outweighed by the central bank’s cautious stance. “A rate cut would be a welcome move—particularly for first-time buyers and those renewing their mortgages,” said John DiMichele, CEO of the Toronto Regional Real Estate Board.

Despite such appeals, the Bank left its key rate unchanged at 2.75%, its second straight hold, citing persistent uncertainty around U.S. trade policy. Argitis notes the central bank sees rates as already near neutral, limiting its urgency to act. He points out that debt—not just high interest rates—is a more fundamental problem: “If you are struggling to pay off debt bills, it’s probably not high interest rates that are the problem, but rather too much debt relative to income.” Governor Tiff Macklem acknowledged slowing economic growth but warned that inflation remains a pressing concern: “That got our attention,” he said, referring to rising core inflation.

Although economists forecast modest additional cuts—perhaps another half-point by year’s end—global pressures are already reversing some of the gains. Yields on five-year Canadian government bonds, which influence mortgage rates, are climbing again due to fears over U.S. fiscal sustainability. Argitis concludes that Canada may be nearing the end of its rate-cutting cycle unless a major downturn forces more aggressive action. “Then we may have bigger problems than the cost of borrowing,” he writes.