The Bank of Canada once again announces no change to the current overnight rate, keeping it at 0.25% where it’s been since the onset of the pandemic. They remain committed to keeping rates low until the second half of 2022 and continue to monitor inflation and employment statistics.
According to the bank of Canada, “The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding 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 the Bank’s July projection, this happens in the second half of 2022.”
Anyone who currently has a variable rate mortgage can expect their rate to remain unchanged until at least the second half of next year. This is a great time for you to revisit your current mortgage rate. If you have a fixed term mortgage, now may be the time to switch to a variable term! Take advantage of these historically low rates, and LIVE A MONSTER LIFE.
Stay tuned for the next announcement scheduled for October 27, 2021. Read the full report by Bank of Canada here. #BankofCanada