Bank of Canada overnight rates stay steady at 0.25%

In Stories by Vancouver Mortgage Broker

The Bank of Canada
has maintained its target for the overnight rate of 0.25%. Prime rate remains at 2.45% for most lenders (some lenders are charging a prime of 2.60%).

The necessary
efforts to contain COVID-19 have caused a sudden and deep contraction in economic activity. CPI inflation is expected to be close to 0 percent in the second quarter of 2020. The Bank of Canada has taken measures to improve market function. These measures will
work in combination to ease pressure on Canadian borrowers.

Read the Bank of
Canada’s full release here: https://www.bankofcanada.ca/2020/04/fad-press-release-2020-04-15/

Prime rate is not forecasted to increase anytime soon so those on variable rates (or for those considering variable rates) can benefit from low prime rates for what is looking like a minimum of 24 months.