Rates, Rates, Rates!
As expected, the Bank of Canada has raised its policy rate an additional 50 basis points or 0.5% today. The Bank of Canada sets the overnight lending rate. The overnight lending rate directly corresponds to the prime interest rate set by the major banks, and this rate affects financial products like mortgages and credit cards.
Today’s increase is only the second time in the last 25 years that the Bank has implemented back-to-back increases of 50 basis points. With soaring inflation, supply chain shortages and global economic challenges, the Bank of Canada is aggressively managing interest rates to cool the economy and curb inflation.
The Bank of Canada meets again on Wednesday, July 13, and we might see another rate increase before inflation stabilizes.
Read the full Bank of Canada announcement.
What should you do?
Now is the time to reach out to your mortgage broker and talk about your mortgage strategy, be it renewing, looking at fixed or variable rates, or any debt consolidation, you want to ensure you’re planning with these upcoming forecasts in mind.
If you have any questions about what the Bank of Canada interest rate increase means or how it affects you, reach out to your Mortgage Broker. We are here to help you achieve your home ownership and financial goals.