Bank of Canada Update
The Bank of Canada (BoC) raised its trendsetting interest rate by a quarter percentage during its latest rate meeting Wednesday – bringing the benchmark to 1.75%.
This was an expected hike, as The BoC and economists had hinted at another increase this year. The new United States-Mexico-Canada Agreement (USMCA) – formerly known as NAFTA – pretty much sealed the deal for a hike this month as it settled a large source of trade uncertainty.
The key rate has been raised five times since June 2017 – to 1.75% from 0.5% – and is at its highest in nearly a decade.
Overall, rates are expected to gradually increase over the next couple of years, returning to more normal levels, since rates have been near historic lows for several years.
This means now’s the perfect time to start home shopping if you’re in the market for a new property and/or examine your debt levels. Pay particular attention to unsecured debt such as credit lines that are impacted by rising rates as well as high-interest credit cards.
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