As of December 2022, the Bank of Canada’s policy interest rate rose to 4.25% and is expected to increase slightly in the first quarter of 2023 in an effort to stunt inflation. While this number isn’t an exact reflection, it carries some weight regarding prime mortgage rates. Borrowers can expect small spikes in both variable and fixed rates, which will eventually level off and decline once inflation cools toward the end of the year or into 2024.