The Bank of Canada has recently announced it is holding it’s benchmark interest rate at 5%. Mortgage holders will have about two months to adjust to the summer’s higher interest rates before the bank’s next decision in October. There are hopes the move will slowly reduce the rate by the end of the year however they did add to their announcement that a raise may be needed to assist in taming inflation.
CPI inflation eased back to 2.8% in June, before rising to 3.3% in July, which is somewhat in line with the Bank’s 3% projection.
If you are thinking of purchasing property or your mortgage is due for renewal, we encourage you to speak with your mortgage broker to understand what this can mean for you.