For the third consecutive meeting, the Bank of Canada has left its key lending rate unchanged at 5.00%.
This follows 10 previous rate increases over 12 rate announcements, which has raised the overnight target rate by 4.75% since March 2022.
In its statement, the Bank said that while high interest rates have restrained consumer spending and that economic growth stalled in the third quarter, it is “still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed.
”The Bank added it wants to see “further and sustained easing in core inflation.”
What happens now?
Today’s decision means there will be no change to the prime rate and no changes to existing variable-rate mortgages. This announcement also has no impact on fixed-rate mortgage holders.
The Bank’s next announcement will take place January 24, 2024.
If you have any questions or concerns about the rise in borrowing costs over the past year, I encourage you to reach out so we can discuss your personal situation and options.