How does the Bank of Canada’s interest rate hike affect variable rate mortgages?

[Globe and Mail - July 13, 2022] The Bank of Canada increased its benchmark rate by a whole percentage point on Wednesday, the most aggressive rate hike since 1998 and an even bigger jump than investors and Bay Street economists were expecting. This is the fourth consecutive interest rate hike since March, as central banks around the world attempt to curb runaway inflation and slow the pace of consumer price growth. The Bank of Canada’s policy rate now sits at [...]

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Bank of Canada overnight rate rises by 100 basis points to 2.50%

Invis - July 13, 2022 The Bank of Canada has raised its policy rate for the fourth consecutive time in 2022, bringing it to 2.50% from a pandemic low of 0.25%. The Bank has stated borrowing costs need to rise quickly to more normal levels to bring inflation back to a target of 2% from its current high of 7.7%. Raising interest rates is a move intended to force Canadians to spend more on interest repayments as opposed to spending [...]

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Bank of Canada hikes rates for first time since 2018

[BNN - March 2, 2022] OTTAWA -  The Bank of Canada raised its overnight lending rate by 25 basis points to 0.50 per cent on Wednesday, marking the first time the central bank has tightened monetary policy since 2018, while highlighting how Russia's attack on Ukraine could weigh on global growth and lift commodity prices further. The central bank cited strong recent economic growth in Canada, resilient household spending despite the surge of the Omicron COVID-19 variant and inflation figures that are "well above" the [...]

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Mortgage Rates as of January 26, 2022 – BoC Announcement

[Invis - January 26, 2022] No change to the Bank of Canada overnight rate at .25% The Bank of Canada announced today that it will continue to hold the overnight rate steady, noting that the recovery continues to require extraordinary monetary policy support. While Canada's economy showed a higher-than-expected resiliency in 2021, new lockdowns and the spread of new variants have put a pause on further expected economic growth. Canada's central bank has ended the bank's provision of monetary stimulus through quantitative easing [...]

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Bank of Canada keeps benchmark rate at record low but economic outlook brightens

Bank forecasting a 6.5% increase in GDP growth in 2021, up from 4% [CBC - April 21, 2021] The Bank of Canada opted to keep its benchmark interest rate steady at a record-low 0.25 per cent Wednesday, saying the pandemic recovery "continues to require extraordinary monetary policy support." At the same time, it significantly increased its growth estimates, forecasting a 6.5 per cent increase this year, up from an earlier prediction of four per cent. The bank said in a statement that it intends to [...]

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Bank of Canada sees economy shrinking in first quarter as second wave makes for choppy recovery – Interest rate held at 0.25%

[Financial Post - January 20, 2021] Bank of Canada governor Tiff Macklem, an enthusiastic water skier, borrowed from one of his favourite sports to describe the current state of the Canadian economy. “We’ve said for some time that we’re expecting a choppy recovery and, unfortunately, we’re in a very serious chop,” he said on a Jan. 20 call with reporters after the central bank released a new forecast that predicts an economic contraction this winter. The forecast is a disappointing turn. Canada’s economy [...]

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Money markets are betting Bank of Canada might make ‘micro rate cut’ next week

[Financial Post - January 12, 2021] TORONTO — Money markets see an increased chance of the Bank of Canada cutting interest rates closer to zero, as tightening economic restrictions to contain a second wave of COVID-19 cases offset optimism that activity will rebound later this year. Interest rates were thought to have hit rock bottom in Canada after they were slashed 150 basis points last March to a record low of 0.25 per cent, a level the Bank of Canada considered [...]

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Bank of Canada stands pat in year’s final rate decision, balancing COVID-19 risks with vaccine optimism

[Globe and Mail - December 9, 2020] The Bank of Canada stood pat on monetary policy in its final scheduled interest-rate decision of an eventful 2020, balancing the near-term economic risks from the second wave of the COVID-19 virus with the arrival of vaccines to alleviate the pandemic. The central bank announced Wednesday morning that its governing council had opted to leave the bank’s key policy rate unchanged at a record-low 0.25 per cent, where it has sat since a series [...]

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Bank of Canada keeps key interest rate unchanged, says COVID-19 economic recovery likely by 2022

[News 1130 - October 28, 2020] OTTAWA – The Bank of Canada kept its key interest rate on hold Wednesday as it said the country’s economy won’t fully recover what was lost to COVID-19 until 2022, with the road to there dependent on the path of the pandemic. The central bank held its overnight rate target at 0.25 per cent. In July, the Bank of Canada said it believed the country had been spared from a worst-case scenario. The bank’s updated outlook in [...]

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Bank of Canada expected to cut mortgage rate to near record low

[News 1130 - August 11, 2020]   VANCOUVER (NEWS 1130) — Mortgage rates could near a record low as experts expect the Bank of Canada to cut its five-year mark as soon as this week. CIBC and BMO both cut their five-year mortgage rates by 15 basis points earlier this week to 4.79 per cent. The Canadian Mortgage Brokers’ Association expects an imminent cut to the benchmark five-year rate, as well. The Bank of Canada is expected to reduce the benchmark qualifying rate from [...]

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