The Bank of Canada (BoC) is holding its key interest rate at 5 per cent, with the bank rate at 5.25 per cent and the deposit rate at 5 per cent.

This is the fourth consecutive rate hold of the year and the BoC's eighth and last rate announcement of 2023.

In 2022, the BoC hiked its interest rate seven times. Then, in January 2023, another increase followed, bringing the key rate to 4.5 per cent.

The Bank held its key rate at 4.5 per cent, precisely as experts predicted, until June 7, when it was raised to 4.75 per cent. On July 12, the BoC brought the key rate to 5 per cent, with the bank rate at 5.25 per cent, and on September 12, it announced that it was holding those rates. Another rate hold was announced on October 25.

In a statement on Wednesday, the BoC said its governing council is "still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed."

"Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour," it concluded.

Last week, Ratehub.ca co-CEO and president of CanWise mortgage lender James Laird explained that it "seemed certain" that the Bank would announce a rate hold today.

"While the Bank continues to keep the possibility of further rate hikes on the table, recent commentary suggests rate hikes are likely over as long as inflation continues to trend in the right direction."

What's next for homeowners?

Laird adds that anyone with a variable-rate mortgage or home equity line of credit will watch when the Bank might cut rates next year.

"Anyone choosing between a fixed and variable rate at the moment would only consider a variable rate if they are open to more risk and have conviction that the Bank is finished or close to finished hiking rates," he said.

"Higher rates are finally biting the housing market, with prices and sales down in most communities."