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 [...]

Read more...

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 [...]

Read more...

Bank of Canada holds key interest rate, forecasts GDP decline

[CTV - July 15, 2020] OTTAWA -- The Bank of Canada will keep its key interest rate at 0.25 per cent until the national economic picture improves, which governor Tiff Macklem said Wednesday will take "a long time." Low interest rates are meant to help households and businesses recover from the COVID-19 pandemic by making borrowing relatively inexpensive. Macklem noted the unusual clarity the central bank provided on the path for its key rate, owing to the unusual level of uncertainty facing Canadians [...]

Read more...

Bank of Canada Announces Rate Hold

Invis - April 15, 2020 It is no surprise the Bank of Canada held firm on its overnight rate of .25% (1/4 percent) and did not venture into negative interest rates that have been tried notably in Europe and Japan with no evidence that negative rates improved GDP outcomes. Generally, economists agree there will not be much of an effect from lower interest rates on new borrowing, because few firms and households will want to borrow to fund investment or [...]

Read more...

Bank of Canada keeps rates at 1.75%, trims 2020 economic forecast

[Global News - January 22., 2020] The Bank of Canada is keeping its key interest rate target on hold at 1.75 per cent and forecasting a slower-than-expected start for the Canadian economy for 2020. The central bank says in its latest forecast that the Canadian economy will grow by 1.6 per cent this year, down 0.1 of a percentage point from its projection in October. While some of the slowdown late last year is being chalked up to a strike at CN [...]

Read more...

Bank of Canada holds rate at 1.75%, says Canada’s ‘resilience’ will be ‘tested’

[Global News - October 30, 2019] The Bank of Canada is keeping its key interest rate on hold in a decision that positions the country as an exception among advanced economies already responding to the weakening world economy. Governor Stephen Poloz’s team says the domestic economy has held up well in many respects and inflation has been close to target. They warn, however, that Canada isn’t immune to the negative effects of slowing global growth. “In considering the appropriate path for monetary [...]

Read more...

Bank of Canada holds rates at 1.75% with no hint about future moves

[Global News - September 4, 2019] The Bank of Canada held interest rates steady as expected on Wednesday but said the escalating U.S.-China trade war was doing more damage to the global economy than it had forecast in July. The central bank — which has sat on the sidelines since last October — maintained its key overnight rate at 1.75 per cent and made no mention of future moves. The current level of stimulus remained appropriate, it said, reiterating the pace of Canadian economic growth [...]

Read more...

Mortgage Stress Test Gets A Little Easier As BoC Lowers Rate

[July 19, 2019 - Huffpost] The Bank of Canada's posted mortgage rate is used in the stress test that many say has cooled Canada's housing markets. OTTAWA — The Bank of Canada has lowered the rate used by mortgage stress tests to determine whether would-be homeowners can qualify, marking the first drop in three years. The central bank’s five-year benchmark qualifying rate is now 5.14 per cent, down from 5.34 per cent. It’s the first decrease in the five-year fixed mortgage rate since September [...]

Read more...

Bank of Canada holds interest rate steady but some suggest a rate cut could be back on the table

[CTV - March 6, 2019] Canada's central bank has decided to keep its benchmark interest rate at 1.75 per cent, and says the timing of possible future hikes has become increasingly uncertain. The Bank of Canada says the economic slowdown that began at the end of last year is a bit worse than it was expecting, including a sharper-than-anticipated slowdown in Canada's oil patch. The bank also singled out softness in the housing market and consumer spending as reasons for a gloomier [...]

Read more...

Bank of Canada maintains overnight rate target at 1¼ per cent

[Source: Bank of Canada - May 30, 2018] The Bank of Canada today maintained its target for the overnight rate at 1¼ per cent. The Bank Rate is correspondingly 1½ per cent and the deposit rate is 1 per cent. Global economic activity remains broadly on track with the Bank’s April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global [...]

Read more...