Bank of Canada Rate Hike

I would be remiss if I didn’t let you know that that Bank of Canada rate Bank_homewent up yesterday.  As expected, it rose a quarter point.  To reflect that the prine rate increased, but the fixed rates haven’t.  Which means that, if your mortgage is tied to the prime rate, expect your interest payments to go up.  If not, you can hold tight for a while.

Here’s the gist of the Bank’s written statement today:

  • “…Consumption growth is expected to remain solid and business investment to rise strongly.”
  • “The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected…”
  • “…Financial conditions in Canada have tightened modestly but remain exceptionally stimulative.”
  • “Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.”