Oct 28 2020 Bank of Canada Rate Decision

BoC Key Interest Rate Remains At 0.25%

As expected the Bank of Canada announced this morning that it will be maintaining its overnight interest rate at 0.25%.

Highlights from the banks announcement today:

• The BoC keeps the overnight lending rate at 0.25% with retail prime rate remaining at 2.45%

• After some rapid economic growth though the summer the bank is reporting in recent weeks a slowing recovery and expects it to continue thought the 4th quarter of 2020 due to a second wave of COVID-19.

• The bank will continue to assist the economy with the Quantitative Easining the purchasing $4B/week in bonds and maintaining low interest rates for atleast another 2 years.

How does this affect mortgages?

Variable rate mortgages and secured credit lines will have no changes to payments. 5 year fixed rate mortgages are now availble for under 2% Please check out the video below! If you have any questions about today's Bank of Canada's announcement or anything else mortgages, remember that my door is always open! You can book a call directly into my calendar by clicking here.

See the full report here