On December 9th the Bank of Canada announced there are no changes to their current overnight rate policy. They will continue with the Quantitative Easing (QE) Program at it’s current pace of at least $4 billion per week. Economic recovery requires extraordinary monetary support policy so the QE program will continue until the recovery is well underway and inflation is brought back to the 2% target. This is not projected to happen until 2023.
What does this mean for you? This means interest rates will remain low for quite some time and now is a great time to purchase or refinance.
The development of the Covid-19 vaccine is providing reassurance that the pandemic will come to an end. However, surging numbers of new cases and restrictions being imposed once again, will likely slow economic growth in the first quarter of 2021.