Next interest rate review canada
WHAT’S NEXT? Interest Rate Increases still on Pause. The Bank Rate is well below what would be considered a normal range. According to the Bank of Canada, “Governing Council continues to judge that the policy interest rate will need to rise over time into a neutral range to achieve the inflation target.” So three quarter-point moves by the Bank of Canada.” Pastrick forecast another two quarter-point increases in 2019, which would bring the benchmark interest rate in Canada to 2.5%. An increased interest rate by the Bank of Canada will not affect those with fixed rate debts (at least until the terms of said debts come up for renewal). But the rate hike might lead to lenders increasing the prime interest rate that Canadians receive for their loans, which in turn leads to an increase in variable interest rates.