Bank of Canada Rate Announcement & Future Rate Outlook

Hey there! Exciting news! The Bank of Canada has decided to keep rates the same! If you’re on a variable rate or have a Home Equity Line of Credit, you can breathe a sigh of relief because there will be no rate or payment changes for you. Woohoo!

The Bank of Canada predicts that as households renew their mortgages at higher rates and restrictive monetary policies continue, consumption may take a bit of a hit this year. However, there’s good news too! GDP growth is expected to strengthen gradually next year. The Bank projects Canada’s economy to grow by 1.4% this year and 1.3% in 2024 before picking up to 2.5% in 2025.

What about the future, you ask? The markets are projecting two rate reductions this year and even more next year. So, Canadians can expect lower rates shortly unless any adverse economic or geopolitical situations pop up.

By the way, fixed rates have started dropping too, but some banks are still offering rates that are way too high. That’s why it’s essential to make sure you talk to us before making any financial decisions. You can book a quick call here to learn more about your options, rate trends, and how this could impact you. Let’s chat soon!