The Bank of Canada announced today that there will be no rate change at this time. Our economy is making a recovery, slightly slower than anticipated.
Is this good news?
It is if you are seeking or renewing a mortgage. The rates are at an all-time low which can certainly benefit you.
There is some concern, however, with CPI inflation:
“The recent increase in CPI inflation was anticipated in July, but the main forces pushing up prices – higher energy prices and pandemic-related supply bottlenecks – now appear to be stronger and more persistent than expected. Core measures of inflation have also risen, but by less than the CPI. The Bank now expects CPI inflation to be elevated into next year, and ease back to around the 2 percent target by late 2022. The Bank is closely watching inflation expectations and labour costs to ensure that the temporary forces pushing up prices do not become embedded in ongoing inflation.” (Bank of Canada, October 27, 2021)
All in all, it is good that the rate remains as is; however, we need to remain cautious that inflation and rate increases will continue to affect our finances as we ease out of the pandemic.
Read the entire Bank of Canada announcement here.
Are you concerned about your mortgage renewal or a future mortgage need, let’s connect now to see how we can plan ahead.
