BREAKING NEWS: The Bank of Canada drops the key rate another 50 basis points! This is unprecedented territory for interest rates. In at least 10 years, the BoC has never lowered its rate twice in the same month and definitely never for a total of 1%.
For home purchases, this should make for great opportunities to buy since both the qualifying rate (as of April 6th) and lower rates will allow for easier financing.
Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.
The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.
The next rate-setting day is October 22nd.