The Bank of Canada delivered a rate pause this morning, leaving its key lending rate unchanged at 4.50%.
This is the first pause following eight consecutive rate increases from the Bank of Canada, which have raised the overnight target rate by 425 bps since March 2022.
In its statement, the Bank said it will “continue to assess economic developments and the impact of past interest rate increases, and is prepared to increase the policy rate further if needed to return inflation to the 2% target.”
What happens now?
This rate pause means there will be no change to the prime rate and no changes to existing variable-rate mortgages. This announcement also has no impact on fixed-rate mortgage holders.
The Bank’s next announcement will take place April 12.
If you have any questions or concerns about the rise in borrowing costs over the past year, I encourage you to reach out so we can discuss your personal situation and options.
Read the Bank of Canada’s full statement here
