Tag Archive: rate decision


Bank of Canada Holds Rates, Gives Mortgagors Confidence

Quick Summary Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (also no change; seePrime Rate) Market Rate Forecast:No BoC hikes until at least 2023 BoC’s Headline Quote: “…The Bank is prepared to provide further monetary stimulus as needed.” BoC on the Economy: “The Bank expects economic slack to persist as the recovery in demand lags that of supply, creating...

Bank of Canada to Remain in Neutral

Quick Summary Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (no change; seePrime Rate) Market Rate Forecast:No BoC hikes until 2022 BoC’s Headline Quote:“…The Canadian economy appears to have avoided the most severe scenario…” BoC on the Economy:“…The Bank expects the economy to resume growth in the third quarter.” BoC’s Full Statement:Click here Next Rate Meeting:July 15, 2020 The...

Bank of Canada Leaves Key Rate at 0.25%

After slashing rates three times in March and buying billions in bond market instruments to further suppress interest rates, the Bank of Canada pressed <Pause> today. Here’s what happened and how mortgagors should respond. Rate Announcement:No change Overnight rate:0.25% Prime Rate:2.45% (seePrime Rate) Market Rate Forecast:No change until at least 2022 BoC’s Headline Quote:“The Bank’s Governing Council stands ready to...

Bank of Canada Cuts But Will Prime Follow?

Amid a global growth scare, the BoC has slashed Canada’s most-watched rate for the first time in almost five years. “…The COVID-19 virus is a material negative shock to the Canadian and global outlooks,” the Bank said in its statement today. Despite how concerned the bank is about fuelling more debt, it chopped its overnight target by 50 bps to...

How to View the Bank of Canada’s More Sombre Tone

Canada’s rate-setter left its key rate untouched today while striking a less-than-cheery chord on the country’s outlook. Here’s a quick take on this morning’s Bank of Canada rate decision: Rate Announcement: No change Overnight rate: Remains at 1.75% Prime Rate: Remains at 3.95% (see Prime Rate) Market Rate Forecast: One rate cut in 2020 BoC’s Headline Quote: “…Governing Council will be watching closely to...

Bank of Canada Stands Pat

The Bank of Canada ended 2019 where it ended 2018, with prime rate frozen at 3.95%. Here’s a summary of the Bank of Canada rate decision this morning: Rate Announcement: No change Overnight rate: Remains at 1.75% Prime Rate: Remains at 3.95% (see Prime Rate) Market Rate Forecast: One rate cut in 2020 BoC’s Headline Quote: “Future interest rate decisions will be guided by…the...

The Bank of Canada, Waiting For Its Cue

The Bank of Canada said today that it’ll keep coasting on rates. But the market isn’t so sure. Investors think our central bank may have to cut sooner than some expect. Here’s a summary of this morning’s decision: Rate Announcement: No change Overnight rate: Remains at 1.75% Prime Rate: Remains at 3.95% Market Rate Forecast: One rate cut in 2020 BoC’s Headline Quote:...

How Long Can the Bank of Canada Resist the Fed’s Rate Pull?

The U.S. Federal Reserve and Bank of Canada seldom make rate announcements on the same day, but tomorrow will be an interesting exception. No one expects any fireworks, but if you believe market expectations, the Fed will cut its key rate 1/4 point while the BoC does a whole lot of nothing. If it all plays out accordingly, it’ll be...

The Bank of Canada Won’t Gamble on a Rate Cut…Yet

Markets predicted the Bank of Canada would do nothing to rates for the 11th straight month…and they were right. Here’s a quick look at the BoC’s rate statement: Rate Decision: No change Overnight rate: Remains at 1.75% Prime Rate: Remains at 3.95% Market Rate Forecast: No change to prime through 2020 BoC’s Headline Quote: “…Canada’s economy is operating close to potential and inflation...

What the Fed Rate Cut Decision Means for Canadian Mortgages

Canadian mortgage rates take their cues from many things, and U.S. monetary policy is near the top of the list. That’s why today’s Fed rate cut—the first since the financial crisis—is meaningful to borrowers. Fed decisions always move Canadian rates in some respect but in this case, key questions remain. Here are the two biggest ones. How Many Cuts Are...