Bank of Canada (BOC) maintained the overnight rate at 0.25% today meaning no change to variable rate mortgages & lines of credits.
The BOC states:
“As the economy recuperates, it will continue to require extraordinary monetary policy support. The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our current projection, this does not happen until into 2023.”
Suggesting that the overnight rate, and therefore prime rates, will stay low for the foreseeable future keeping variable rates low.
The BOC also states:
“The Bank is recalibrating the QE program to shift purchases towards longer-term bonds, which have more direct influence on the borrowing rates that are most important for households and businesses.”
Suggesting that fixed mortgage rates will stay low for the foreseeable future as this “purchase” activity suppresses borrowing costs consumers.
This is an opportune time to re-assess your existing borrowings (mortgage, line of credit, car loans, and credit cards) and seek opportunities for savings. Share your situation with us and we would love to see how we can help: Tell Us Your Story
For the full Bank of Canada Announcement click here: Bank of Canada Press Release