Bank of Canada update

April 22, 2021 | Posted by: Eric Palmer

No Bank of Canada Rate Change

The Bank of Canada announced today that it is maintaining the benchmark rate, noting that our first quarter growth was better than anticipated, although the rise of more transmissible variants of COVID-19 and new lockdowns are concerning. As vaccines roll out, consumption is expected to rebound sharply. The Bank will monitor the risks associated with our hot housing market, which is being driven by low rates, limited supply, and the desire for more living space.

While there is an improved outlook, the Bank has determined that the recovery continues to require extraordinary monetary policy support, and they will continue to do so until slack in the economy is absorbed and the inflation target is achieved, which is now expected as early as the second half of 2022, much sooner than previously anticipated.

The next rate-setting day is June 9th, 2021.

With rates still extremely low, this is a great time to get in touch for a review of your mortgage strategy. It's important to get advice and a professional assessment of your situation if you want to switch your mortgage for a lower rate, need a new mortgage, are renewing, or looking to refinance for debt consolidation, renovations or other large expenditures.

Be safe. Be well. Be happy.

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