Today, the Bank of Canada announced it would be maintaining it’s overnight benchmark rate, the main tool used by the BoC to conduct monetary policy, at 0.25%. This announcement has provided some new observations and outlook on the economy. They have also confirmed their commitment to Quantitative Easing, large-scale asset purchases. it looks like interest rates will remain low as Canada slowly gets back on track during the covid-19 pandemic. Their message is clear, interest rates are going to remain low. So if you are considering making a major purchase or getting a mortgage, you can be confident that rates will be low for a long time to come.
The announcement is positive, stating that “global economic activity is picking up. This return to growth reflects the relaxation of necessary containment measures put in place to slow the spread of COVID, combined with extraordinary fiscal and monetary policy support. As a result, financial conditions have improved.” It looks like the Canadian economy is beginning to recover.
During this time, the policies put in place have continued to support incomes and keep credit flowing, which has softened the blow and laid a good foundation for economic recovery. There has been some bounce-back with employment with businesses starting to re-open.
With rates being so low it is a great time to refinance to consolidate debt, take out equity for renovations, or even to simply transfer elsewhere for a lower rate. Contact us today to see if you can take advantage of the current market and lowest rates.