As expected, the Bank of Canada held its rate today at a 1/4 percent. There is some positive outlook as the COVID-19 vaccine begins a rollout; however, the extent of the pandemic globally is still a major concern for recovery.
Here are a few highlights taken from the announcement:
- The COVID-19 pandemic continues to take a severe human and economic toll in Canada and around the world. The earlier-than anticipated arrival of effective vaccines will save lives and livelihoods, and has reduced uncertainty from extreme levels.
- The economic recovery has been interrupted in many countries as new waves of COVID-19 infections force governments to re-impose containment measures. However, the arrival of effective vaccines combined with further fiscal and monetary policy support have boosted the medium-term outlook for growth.
- Canada’s economy had strong momentum through to late 2020, but the resurgence of cases and the reintroduction of lockdown measures are a serious setback.
- In view of the weakness of near-term growth and the protracted nature of the recovery, the Canadian economy will continue to require extraordinary monetary policy support.
Again, the mortgage rates and terms are favourable for homebuyers and mortgage renewals. It is always good practice to review your finances and your mortgage terms on a regular basis. I would be happy to review with you to see if you can take advantage of any more favourable offers. You can schedule a call with me HERE.