Bank of Canada Rate Watch Jan 2020

What did they decide?

The Bank of Canada today maintained its target for the overnight rate at 1.75 percent.

Why?

The global economy is showing signs of stabilization, and some recent trade developments have been positive. However, there remains a high degree of uncertainty and geopolitical tensions have re-emerged

Canada is showing that growth in the upcoming term will be weaker with an unexpected larger output gap than predicted in Oct. The economy is estimated to have grown 0.3% in the last quarter of 2019 and 1.3% in the first quarter of 2020.

What does this mean?

Many economists and observers are predicting that due to uncertainty in the global economy combined with geopolitical tensions means 2020 may see a drop to the prime rate and fixed mortgage rates.

You can read the full Bank of Canada press release here.

How will this change my interest rates?

The retail bank prime rate remains unchanged at 3.95%. We now wait to see if the upcoming economic data in 2020 will cause a decrease in rate.

May I help you?

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