Bank of Canada Rate announcement January 28, 2026

Bank of Canada interest rate announcement—BOC held key interest rate at 2.25%—and what it means for Saskatoon’s economy. Despite global uncertainties, Canada’s inflation is stabilizing near the 2% target, with local job growth and investment expected to rise modestly. Saskatoon residents and businesses should monitor changes in U.S. trade policy, which continues to affect exports and economic growth. Learn how this impacts mortgages, inflation, and economic planning in Saskatchewan.

Economic News in Saskatoon

Saskatchewan continues to be one of the hottest housing markets in the country, with average home prices up 9% in 2025. Support for demand has come from solid affordability (Chart 5). Meanwhile, job growth has been relatively firm, backstopped by comparatively robust economic growth. On the supply side, resale listings remain relatively low. This has kept conditions tight and offers a solid starting point in 2026 for price growth. With Saskatchewan’s economy set to gear-down but outperform Canada’s again this year, we see home price growth slowing but remaining solid in Saskatchewan

Bank of Canada Interest Rate Updates and its impact on saskatoon

As of January 2026, the Bank of Canada has held its overnight rate steady at 2.25%, maintaining stable borrowing costs across Canada, including Saskatoon. This rate pause follows earlier cuts and signals a likely hold through much of the year, helping keep mortgage rates predictable but not significantly lower. In Saskatoon, where housing inventory remains very tight, these stable rates continue to support buyer demand without improving affordability much, as supply shortages drive competition and price pressure. For buyers, this means steady but not cheaper financing; for sellers, it sustains strong market conditions; and for investors, manageable carrying costs persist amid a competitive environment.

Inflation & Business Outlook

Saskatchewan’s Consumer Price Index (CPI) rose about 2.2 % between December 2024 and December 2025, similar to or slightly below national inflation. This indicates relatively moderate inflation pressure on households and businesses compared with other regions in Canada.
Inflation remains a concern for local firms: in recent business confidence surveys, about 17 % of Saskatoon businesses cited inflation as a key concern affecting costs and pricing.

Financial Advice for Saskatchewan Residents

In 2026, Saskatchewan residents should focus on financial flexibility amid stable but uncertain economic conditions. With inflation around 2.2% and interest rates paused at 2.25%, it’s wise to build emergency savings, lock in predictable loan payments, and avoid overextending on variable-rate debt. In the tight housing market, first-time buyers should act early but cautiously, while investors should prioritize cash-flow properties. Long-term investment strategies should include diversification, RRSPs, and TFSAs, with GICs offering stability. To counter ongoing cost-of-living pressures, households should regularly review budgets, cut recurring costs, and seek energy-efficient upgrades. Business owners should invest in staff retention, operational efficiency, and pricing agility to stay competitive. Overall, staying disciplined and adaptable is key to making the most of 2026’s opportunities.