Bank of Canada Rate Remains Unchanged
The Bank of Canada holds their rate as is today and have expressed they will exercise caution before potential future increases.
While they have seen economic growth increase they don’t predict this to continue.
The Bank of Canada also indicated they are expecting inflation to increase up to 2% in 2018. Over the years, especially when Mark Carney was Governor of the Bank of Canada, the key to interest rate increases was when inflation increased over 2%. We have not seen that in the last 2 interest rate changes but this announcement was the first talk of inflation in a while.
What you can expect from today’s announcement:
-Canadian dollar will lose strength (this is not good if you are planning any trips to the US, hopefully you already have US dollars)
-Mortgage rule changes effective Jan 1, 2018 will have an impact on the housing market.
Here is today’s announcement from the Bank of Canada:
Here are some recent articles worth exploring if you are so inclined.
The next Bank of Canada rate announcement is set for December 6, 2017.
I have been receiving a lot of inquiries about the new Stress Test rules coming on January 1, 2018. Please contact me anytime if you want to understand how these could affect you.
Author: Daryl Harris, AMP