| The Bank of Canada Raises Rates
The Bank of Canada (BoC) recently surprised markets when it raised its overnight lending rate by 0.25%. Another rate hike was expected before the end of the year, but the consensus believed it would wait until its October meeting.
What do the experts think?
A survey of Bloomberg economists says Canada's central bank will raise its benchmark interest rate for a third consecutive meeting on October 25, 2017. Keep in mind these predictions can change rapidly, depending upon a variety of factors.
Would the BoC raise rates three times in a row?
This would not be the first time the BoC has raised rates three meetings in a row. In 2010, the BoC raised the overnight rate from 0.25% to 1.00%.
However, keep in mind that the BoC had to retreat from those rate hikes in 2015 when oil prices softened. The BoC reduced the overnight rate back to 0.50%.
How much does this change my interest costs?
To put that into perspective, a 0.25% increase equates to ~$20 per month more in interest.
What should you do?
If you are uncertain about your current mortgage rate, feel free to reach out to me. I'd be happy to answer any questions and help you determine the best course of action for you.
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