Bank of Canada Raises Interest Rate to 1.75%

Bank of Canada Raises Interest Rate to 1.75%
The Bank of Canada can finally see “home” on the horizon with the latest increase of interest rates now levelling out. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark interest rate a quarter point to 1.75 percent, as expected.
They said they feel pretty good about the economy now that politicians in Canada, Mexico, and the United States have agreed on a revised trade agreement and that evidence suggests households are adjusting well to higher borrowing costs. Policy makers raised their outlook for business investment and exports, suggesting the economy is becoming less reliant on debt-fuelled spending and the housing market.
Senior deputy governor Carolyn Wilkins’s emphasis on the still-low level of borrowing costs was a reminder that the public needn’t panic at the sight of marginally higher interest rates, and a gentle warning that no one should expect interest rates to stay at this level.
The economy is growing a little faster than the Bank of Canada predicted a few months ago, and “vulnerabilities” from elevated levels of household debt are “edging lower,” it said. Policy makers reiterated that interest rates must rise, and for the first time offered a more definitive notion of where it wants to go.
So – what does this mean for you? As a long-standing real estate agent, it’s my job to put your minds at ease, and not let financial disturbances come between you and your dream home! Let’s talk today, and you’ll see just how painless navigating mortgage rate fluctuations really are!
Additional Reading
More Housing is Coming
It’s no secret that the province of British Columbia has been struggling in the affordable housing department for some time now. In its latest action plan, the provincial government is looking to shift the narrative and deliver more affordable housing to British...
Back In The Valley
While plenty of real estate markets have experienced highs and lows going into and coming out of the pandemic, the Okanagan continues to maintain a unique standing. Unlike many Canadian real estate markets, the Okanagan (and Kelowna in particular) was on a steady...
Welcoming the New
The Okanagan - Canada’s best-kept secret for decades - has been on the map for a few years now thanks to our incredible lifestyle, weather, and real estate opportunities to name a few. With Canadians shifting their priorities throughout the pandemic lockdowns, seeking...



