December 07 2022
As of December 7, 2022, the Bank of Canada raised its key interest rate by 50 basis points to 4.25%. This is the seventh rate hike this past year and part of the BoC’s ongoing efforts to fight against inflation. The central bank also signalled in a statement accompanying the decision that a pause in rate hikes could be coming. Additionally, bond yields are plunging and fixed mortgage rates are slowly following a downward trend. Nevertheless, it’s probably a good idea to lock in a rate sooner rather than later if you plan to buy a home or refinance.
The Bank of Canada increased its target for the overnight rate to 4.25%, with the Bank Rate at 4.5% and the deposit rate at 4.25%.
The Bank of Canada’s key interest rate now sits at its highest level since 2008. It’s expected that the central bank’s tightening cycle will peak here and hold at this rate for much of 2023.
The Bank of Canada raised its benchmark interest rate by 50 basis points, but implies that further decisions will lead with a more neutral, wait-and-see approach.
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