My Mortgage Blog

The Bank of Canada (BoC) has announced another 50bps reduction in interest rates today in an emergency meeting. The rate has dropped to .75%. The BoC said they are prepared to cuts rates further. We will be monitoring closely if financial institutions pass on the full discount to their Prime rate over the next few days.

The Bank of Canada went on to say "It is clear that the spread of the coronavirus is having serious consequences for Canadian families, and for Canada’s economy. In addition, lower prices for oil, even since our last scheduled rate decision on March 4, will weigh heavily on the economy, particularly in energy intensive regions.”

The BoC will provide a full update of its outlook for the Canadian and global economies on April 15. As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target."

The situation is evolving and fluid, and as such we will continue to keep you up to date on the developments.

https://www.bankofcanada.ca/2020/03/bank-of-canada-lowers-overnight-rate-target-to-%c2%be-percent/ 

I will continue to keep you updated.


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