Today the Bank of Canada (BoC) announced its decision to increase interest rates by 50 bps to 1.5% for the second time this year in an effort to control inflation. While this isn’t the best news for speculators and investors, this is a positive for first-time home buyers in Canada. With this rate hike, we can expect to see home prices across the country continue to decrease, while monthly payments rise slightly – but not by much. For more information, below is the press release from the Bank of Canada.
Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening
As of Wednesday, June 8, 2022, the BoC increased its target overnight rate to 1.5%, with the bank rate at 1.75% and the deposit 1.5%. The BoC is also continuing its policy of quantitative tightening as inflation both globally and in Canada continues to rise.
