BOC Rate Announcement

The Bank of Canada meets today and will publish their latest policy on interest rates. Most economists are widely expecting a 75 basis points increase similar to what the Federal Reserve did in the US just recently. If this does happen it will be the largest rate increase in over 26 years. Which many believe is required to finely bring our sky high inflation under control.

With the announcement today that the US CPI numbers just hit 9.1% for June which is a 40 year high, it is almost assured that we will have an oversized rate increase.

Well the BOC just exceeded everyone’s expectation by increasing the overnight lending rate by 100 basis points to 2.5%. This as a result will increase the prime lending rate from 3.7% to 4.7%. So those with variable rate mortgages or lines of credit will have their payments increased for the next month. In the policy announcement they BOC stated that CPI has remained high ( in the 8% range) due to the war in Ukraine &supply chain issues that have yet to be resolved.

In the published announcement BOC indicated that this may not be the last of the rate increases and it will depend on the state of the over all economy and how inflation reacts to these changes. The next scheduled meeting is September 7th.

Today I am thankful for my daily motivational quotes my friend Shane sends me on a daily basis, a hill run when I didn’t want do it and date night with my wife last night.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here