The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent with the Bank Rate at ½ percent and the deposit rate at ¼ percent.
The outlook has improved for both the global and Canadian economies. Activity has proven more resilient than expected in the face of the COVID-19 pandemic, and the rollout of vaccines is progressing. A number of regions, including Canada, are experiencing a difficult third wave of infections and lockdowns.
Canada’s economy had strong momentum through to late 2020, but the resurgence of cases and the reintroduction of lockdown measures did have an impact on the economy. The rate will have to stay low to help recuperate from the economic impact of COVID-19. This is good news for homeowners and buyers looking to get into the market.
The next scheduled date for interest rate announcement is June 9, 2021. Read the full report by Bank of Canada here.
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