Bank of Canada Interest Rate Schedule 2023-2024. Are rates going up again?
CURRENT OVERNIGHT INTEREST RATE: 5.00% (last updated July 12, 2023)
What should I expect from a Bank of Canada announcement?
The Bank of Canada is responsible for the nation’s monetary policy which includes setting the key policy rate (target overnight rate). The announcements will let the public know if there is a change made to this rate by the Bank of Canada. The prime rate is influenced by the Bank of Canada’s rate announcement, and is what major banks and financial institutions in Canada use to set interest rates for loans and lines of credit which also include variable rate mortgages. So when the Bank of Canada rate changes, mortgage rates will change accordingly.
When are the Bank of Canada interest rate announcements scheduled for 2023?
The Bank of Canada rate announcements are predetermined and follow a set schedule for the entire year.
Bank of Canada interest rate announcement schedule for 2023:
Will the Bank of Canada increase rates again in the next (Sept 6th) announcement?
The jury is still out on if there will be a rate hike in the upcoming September announcement? Well the jury is still out on this one, most economists are saying there is around a 30% chance rates will go up, 70% for a rate hold.
Earlier this month bets on another hike in September rose after July’s consumer price index surged to 3.3 per cent, moving beyond the Bank of Canada’s target range of 2 per cent.
We will have to keep an eye on the labour markets which have shown signs of cooling, with the unemployment rate rising 0.5 percentage points in the last three months. Job vacancies out next week should (fingers crossed) show further declines.
Worried about a hike? Sign up for Perch and lock in your rate now.
What is the Canada interest rate forecast for 2023?
As of July 12, the Bank of Canada interest rate is at 5.00%. The Bank of Canada will monitor closely at the economy to determine future policy.
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You can read more about Perch's Canada interest rate forecast for 2023 here.
Bank of Canada’s historical interest rate changes 2021 to 2023
To better determine mortgage rate forecasts and understand how interest rates change over the years, it’s important to take into account historical trends. If you plan on entering the real estate market, it’s a good idea to understand how these changes will affect the housing market.
(source: Bank of Canada)
What is a monetary policy report?
A monetary policy report is a quarterly report of the Bank of Canada’s Governing council, and will present the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks. The main goal of monetary policy is to preserve the value of money by keeping inflation low, stable and predictable. This will give Canadians more confidence to make investment and spending decisions, encourage longer-term investment in the Canadian economy, and support sustained job creation and higher productivity. Our standard of living then improves as a result of this. The inflation-control target and the flexible exchange rate are the two main parts of Canada’s monetary policy framework. This framework helps make monetary policy actions readily understandable, and enables the Bank to demonstrate its accountability to Canadians.
Where can I find the Bank of Canada’s monetary policy reports?
These reports are released when the Bank of Canada announces their target overnight rate.
You can find the reports on the Bank of Canada’s website.
Why is it important to understand the Bank of Canada interest rate announcements?
If you are planning on entering the real estate market soon or are currently a homeowner, it’s important to follow along with the Bank of Canada’s rate announcements. These rate changes will have a direct impact on the housing market and housing affordability. You’ll be able to manage your expectations of the housing market better and make better decisions when it comes to your home ownership journey and budget.