The Bank of Canada has maintained its overnight rate. There is a positive outlook, although met with caution as we start opening up amid this pandemic. The maintaining of the rate is good news for those that are looking for a mortgage or looking to renew a mortgage in the next few months. The housing market is still at historical highs but looks to be easing a little which could help those who are looking for a new home.
Here are some key highlights from the Bank of Canada:
- The global economy is recovering strongly from the COVID-19 pandemic, with continued progress on vaccinations, particularly in advanced economies. However, the recovery is still highly uneven and remains dependent on the course of the virus. The recent spread of new COVID-19 variants is a growing concern, especially for regions where vaccination rates remain low.
- Consumption is expected to lead the recovery as households return to more normal spending patterns, while housing market activity is projected to ease back from historical highs.
- Employment has once again begun to rebound, and we expect the hardest-hit segments of the labour market to post strong gains as the economy re-opens. However, the pace of the recovery will vary among industries and workers, and it could take some time to hire workers with the right skills to fill jobs.
- The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s July projection, this happens sometime in the second half of 2022.
You can read the full announcement HERE.
I know I am repeating myself; however, it is extremely important to be diligent at this time with low rates – be sure you plan ahead, review your current mortgage rate and terms, and get the best plan in place to move forward with caution yet assurance that you maintain a positive financial status.