BoC Rate Announcement Dec 9 2020!

The Bank of Canada has done it again!

Well, actually they didn't do it. As expected for the 6th straight time that the Bank of Canada has met since last March announced they will be maintaining its overnight interest rate at 0.25%. Here are some of the reasons.

• The bank has made it clear in the past that they do not intend on adjusting the overnight rate anytime in the immediate future the current projection is showing that could be until 2023. Along with not changing the overnight rate the bank is going to continue to inject $4 billion dollars a week into government bonds via the quantitative easing program.

• In Canada, there was a big economic turnaround in the 3rd quarter following the dramatic loss in the 2nd. People are slowly returning to work however different regions and industry sectors are still growing a different paces.

• As Canada headed into the 4th quarter the economy was growing quicker than projected in the monetary report released in October. However, in recent weeks several different regions have faced record numbers of covid cases triggering new lockdowns and restrictions. These restrictions are expected to affect the economic growth in the 1st quarter of 2021 creating uncertainty until a vaccine is widely available.

• The programs set up by the Government are expected to properly assist both businesses and households through the second wave of the pandemic into the recovery.

• Inflation is currently sitting at 0.7% and the Bank of Canada expected the economy to need extraordinary assistance until a steady inflation level of 2% is obtained.

Remember if you have any questions about today's Bank of Canada's announcement or anything else mortgages, remember that my door is always open!