The Bank of Canada made its second interest rate decision of 2022. Find out more here.
As expected, at 10 am eastern, the Bank of Canada made its most anticipated decision on interest rates since the pandemic began.
After weeks of speculation and anticipation of an increase, central bankers finally pulled the trigger and moved their overnight rate higher.
The Bank of Canada announced the increase in the target rate to 0.5%. This is the first increase since 2018 and more rate hikes are expected in 2022 as the Bank attempts to tackle inflation and the economy continues to rebound.
The increase in the key rate will affect the cost of borrowing for various loans, including variable rate mortgages and lines of credit as lenders’ prime rate increases as well.
If you have any questions or wondering what this means for your situation, please don’t hesitate to reach out to me!
The next Bank of Canada announcement is scheduled for April 13th, 2022. I’ll make sure to keep you informed.