Bank of Canada Rate Hikes
Monday Apr 30th, 2018Share
With the Bank of Canada keeping its rates at the current rate. It does raise the question as to when the current mortgage rate will rise.
The central bank’s next interest-rate announcement is May 30, 2018, followed by one on July 11, 2018.
In theory, the central bank has to lift its current benchmark by 1.75 percentage points in order to return to normal.
Markets see an 80 per cent probability the Bank of Canada will raise rates in May, while a hike is fully priced in for July.
The current rate as of today is 1.25 per cent.
How will everyone handle the situation if the rate does rise? Will it cause more fear to clients? Will they start to buy now or will they continue to hold off on the chance of the rate going higher? Only time will tell.
Source: George Labatia, Mortgage Agent, April 26, 2018