No change to the Bank of Canada overnight rate at .25%
The Bank of Canada announced today that it will continue to hold the overnight rate steady, noting that the recovery continues to require extraordinary monetary policy support. While Canada's economy showed a higher-than-expected resiliency in 2021, new lockdowns and the spread of new variants have put a pause on further expected economic growth. Canada's central bank has ended the bank's provision of monetary stimulus through quantitative easing (stimulative bond buying).
Worsening inflation pressures owing to global supply chain bottlenecks, labour shortages and rising energy costs *will likely force the Bank of Canada to begin raising interest rates as early as March of 2022. *Canada's inflation rate moved to 4.8% recently, driven by high gas prices, soaring housing and automobile costs and rising food prices and this is well above the Bank of Canada's target rate of 2% that it had hoped to maintain.
Tiff Macklem, the Bank of Canada Governor said, "The challenge here is to bring inflation back to target without choking off the recovery."
The next rate-setting day is March 2nd, 2022.
Now is the time to get in touch for a review of your mortgage strategy. It's important to get advice and a professional assessment of your situation if you want to switch your mortgage for a new rate, need a new mortgage, are renewing, or looking to refinance for debt consolidation, renovations, or other large expenditures.
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.
Insured mortgage rates, subject to change. Conventional and refinance rates may be higher.
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5 yr variable
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