Bank of Canada Interest Rate Announcement – December 9th, 2020
December 9, 2020
The last Bank of Canada interest rate announcement of 2020 takes place today and rates will remain flat. The Bank of Canada governor made it clear rates will be flat until 2023.
With fixed rates continuing to drop for high ratio purchases, it provides a great opportunity to save money. With the qualifying rate for mortgages still hovering around 4.79% and about a 3% difference between what you will pay and the rate you are being qualified at, this difference can be used to save money for your RRSP’s, the kids RESP’s, an investment fund or pay down your mortgage at an accelerated pace!
“Canada’s economic recovery 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 October projection, this does not happen until into 2023. To reinforce this commitment and keep interest rates low across the yield curve, the Bank will continue its QE program until the recovery is well underway and will adjust it as required to help bring inflation back to target on a sustainable basis.”
The next scheduled date for announcing the overnight rate target is January 20, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published at the same time.
Take advantage of the savings. Get in touch with MonsterMortgage.ca and take advantage of these historical low rates! #LIVEaMONSTERlife