---
title: ICBA ECONOBOT: BoC Hold Meets a Construction Slowdown
description: Bank of Canada holds rates steady amid a construction slowdown, with building permits dropping significantly, signaling economic caution.
---

[Economics Blog ](https://icba.ca/economics-blog)

# [ICBA ECONOBOT: BoC Hold Meets a Construction Slowdown](https://icba.ca/economics-blog/icba-econobot-boc-hold-meets-a-construction-slowdown)

 Written by [Jordan Bateman](https://icba.ca/economics-blog/author/jordan) | Jun 11, 2026 2:45:16 PM

**TOP STORY**

**The BoC’s Fifth Hold Meets a Construction Slowdown**

A day after the Bank of Canada held its policy rate at 2.25% for a fifth straight time, fresh data underlined exactly the soft backdrop keeping the Bank cautious: the total value of building permits fell 7.6% in April to $12.5 billion, with British Columbia driving much of the decline ([Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/260611/dq260611b-eng.htm?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)). Economists read Wednesday’s hold as a central bank in wait-and-see mode — Scotiabank’s Derek Holt said the Bank “offered nothing new” and is arguably overplaying trade-policy risks, while TD pointed to GDP running well below the Bank’s own projections, leaving real slack in the economy ([economist roundup](https://www.mpamag.com/ca/news/general/all-the-economist-reaction-to-the-bank-of-canadas-latest-decision/578518?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)). For BC and Alberta builders, the message is consistent: borrowing costs are frozen, the next move could go either way, and weak construction intentions are now a flashing signal rather than background noise. With RBC expecting no rate relief before a possible 2027 hike, the financing math on stalled projects isn’t getting easier this year.

 

**THE NUMBERS — STATISTICS CANADA**

**Building Permits, April 2026** — Across Canada, down 7.6% to $12.5B, with both non-residential (-10.5%) and residential (-5.5%) falling. BC led the non-residential drop — including a $607M plunge in institutional intentions — and BC alone more than accounted for the entire national multi-family decline, its permits falling $432.7M against a $429.7M national drop. (Alberta bucked the trend, with permits up 3.3% to $1.6 billion.) Nationally, 24,000 units new homes were authorized, down 8% from March. [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/260611/dq260611b-eng.htm?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)

**International Investment Position, Q1 2026** — Canada’s net foreign asset position fell $310.8B to $1,360.5B as global market swings reshaped the balance sheet — a reminder of how exposed Canada is to the same volatility unsettling the BoC. [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/260611/dq260611a-eng.htm?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)

 

**FROM THE ECONOMISTS**

**Scotiabank — Derek Holt** — [*reaction to the BoC hold*](https://www.mpamag.com/ca/news/general/all-the-economist-reaction-to-the-bank-of-canadas-latest-decision/578518?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy) — The Bank “offered nothing new” and is in pure monitoring mode, waiting for clarity on the risks — and, in Holt’s view, overplaying the threat from U.S. trade policy.

**TD — Andrew Hencic** — [*reaction to the BoC hold*](https://www.mpamag.com/ca/news/general/all-the-economist-reaction-to-the-bank-of-canadas-latest-decision/578518?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy) — Calls the growth backdrop the real story: GDP came in well below the Bank’s last projections, leaving significant slack. TD sees the Bank on hold through the balance of 2026.

**RBC Economics** — [*BoC on Hold While the Fed Moves Toward the Sidelines*](https://www.rbc.com/en/economics/financial-markets-monthly/boc-on-hold-while-the-fed-moves-towards-the-sidelines/?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy) — Expects the Bank to stay parked at 2.25% for the rest of the year, with the next move a moderate hike in 2027 rather than a cut.

 

**IN BRIEF**

**Auto Sales Cool** — Canadians registered 397,601 new motor vehicles in Q1, down 6.9% from a year earlier — another sign of cautious consumers. [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/260611/dq260611c-eng.htm?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)

**Travel Rebounds** — International arrivals to Canada hit 5.2 million in May, up 7.6% year-over-year — the second straight annual gain since the cross-border slump began in early 2025. [Statistics Canada](https://www150.statcan.gc.ca/n1/daily-quotidien/260611/dq260611d-eng.htm?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-8FmCR3S9q9GAw9LMca5_-KdrEOCWhL73Ewd-uSJhnMh4AyNW2IjA03bpnmcDJrTQLY5CWy)

 

###### *The ICBA EconoBot is an AI-powered briefing trained in the analytical perspective and policy interests of ICBA Economics.*

###### *Prepared with data from Statistics Canada, bank economics desks, and policy research institutes.*

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