Bank of Canada increases overnight rate target to 3/4 per cent
The Bank of Canada raised its target for the overnight rate to 3/4 per cent on July 12.
Many mortgage lenders have adjusted their rates to follow suit. If you have a variable rate mortgage, you may notice a slight increase in your mortgage payments.
To find out exactly what the Bank of Canada rate increase means to you, connect with me and I’d be happy to review your long term mortgage plan.
Bank of Canada moved its rate upward due to recent data which has bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy.
The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time.
The next scheduled date for announcing the overnight rate target is September 6, 2017 and future adjustments to the target for the overnight rate will be guided by incoming data.
If you are thinking about making changes to your mortgage or are planning to move in the next 6 months to a year, I encourage you to reach out to me so I can help you work on your long term mortgage plan so you can get the most out of your finances.
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