The Bank of Canada made a rate announcement today.
The Bank of Canada has delivered a rate hold this morning, leaving its key lending rate unchanged at 5.00%. This is a welcome update for those with mortgages, loans and lines of credit that have variable rates tied to prime.
This follows 10 previous rate increases, which raised the overnight target rate by 475 bps since March 2022.
In its statement, the Bank said it decided to pause rates due to “recent evidence that excess demand in the economy is easing and given the lagged effects of monetary policy.”
However, it added that it “remains concerned about the persistence of underlying inflationary pressures and is prepared to increase the policy interest rate further if needed.”
What happens now?
Today’s decision means there will be no change to the prime rate and no changes to existing variable-rate mortgages. This announcement also has no impact on fixed-rate mortgage holders.
The Bank’s next announcement will take place October 25.
If you have any questions or concerns about the rise in borrowing costs over the past year, I encourage you to reach out so we can discuss your personal situation and options.
You can read the Bank of Canada’s full statement here.
