April 15, 2026 is our date – the date our current mortgage ends. So I’ve been very interested in what the interest rate will be at that point. Now be clear that’s still a long way from today as markets and interest rates go. But I’m hopeful!! But today they cut the prime by a full half point.

While the cost of everything has remained high, the rate of inflation has been falling. What surprised everyone is that inflation is falling too low. Sounds good to me, but ask an economist and they will tell you that it can be bad for the economy and can lead to deflation. And that would be dangerous to the economy.

So this is a two edged sword. My mortgage might be less, but earned interest on investments might be lower too.

The Bank of Canada is worried about employment or unemployment. And they are worried about business investment in the economy. So there is much in the state of the economy is in question. Thus the Band of Canada took a big gamble to try to stimulate the economy – reduce the cost of capital so that perhaps businesses will pick up the pace again.

In a way this is news from The Villa!