Beyond expectations of a rate hike, the Bank of Canada held its rates today stating,
“The Canadian economy entered 2022 in a strong position.”
I know there is concern about rates increasing. Although, we all fear rate increases, the reality is that the rates are extremely low and increases will come gradually at some point. For now, it is best to evaluate your financial position, review any opportunity for changes or how an increase might affect you, and be prepared for future fluctuations.
Some positive notes from the Bank of Canada announcement today:
- GDP growth in the second half of 2021 now looks to have been even stronger than expected.
- The economy entered 2022 with considerable momentum.
- A broad set of measures are now indicating that economic slack is absorbed.
- Strong employment growth – job vacancies are elevated, hiring intentions are strong, and wage gains are picking up.
- As supply shortages diminish, inflation is expected to decline reasonably quickly to about 3% by the end of this year and then gradually ease towards the target over the projection period.
If you are considering a mortgage or renewing your mortgage, now is the time. Take advantage of the lower rates. Increases are expected to be minimal, but why wait when we can negotiate some good terms right now.
Read the full Bank of Canada Announcement here.