Real Estate News

BREAKING NEWS: Bank of Canada raises overnight rate to 1.5%

Business and economic fundamentals are strong in Canada and across the globe
Bank of Canada

Today, the Bank of Canada increased its target for the overnight interest rate to 1.50% — up o.25% from 1.25%. The big reason: BoC analysts believe the global economy will grow by about 3.75% in 2018 and 3.5% in 2019 — and this ongoing global economic growth gives the BoC an opportunity to respond by increasing mortgage interest rates.

According to the official statement today, “Canada’s economy continues to operate close to its capacity and the composition of growth is shifting…Exports are being buoyed by strong global demand and higher commodity prices. Business investment is growing in response to solid demand growth and capacity pressures, although trade tensions are weighing on investment in some sectors.” In short: Companies are responding to their market fundamentals, not a U.S. President with a twitchy-Twitter finger buoyed by media headlines.

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