A news report states, 'The Bank of Canada held its key interest rate steady at 5% today, citing persistent inflation as a primary concern.' What is the most likely consequence of this decision for Canadians with variable-rate mortgages?

Question: A news report states, 'The Bank of Canada held its key interest rate steady at 5% today, citing persistent inflation as a primary concern.' What is the most likely consequence of this decision for Canadians with variable-rate mortgages?

Answer options: ✅ Their mortgage payments will likely remain unchanged, at least for now.

• Their mortgage payments will decrease significantly.
• Their mortgage payments will increase significantly.
• They will receive a rebate from the bank.

Correct answer: Their mortgage payments will likely remain unchanged, at least for now.

Explanation: If the Bank of Canada holds its key interest rate steady, it means there is no immediate change in the benchmark that affects variable-rate mortgages, so payments would generally remain the same.