April 10, 2024 Bank of Canada Rate Announcement

Once again, the Bank of Canada’s rate announcement brings stability to the financial landscape. The overnight target rate remains unchanged at 5%, leaving the prime lending rate at 7.2%.

In its statement, the Bank said, “Overall, the Bank forecasts GDP growth of 1.5% in 2024, 2.2% in 2025, and 1.9% in 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026.”

The Bank also stated in the announcement, “Based on the outlook, Governing Council decided to hold the policy rate at 5% and to continue to normalize the Bank’s balance sheet. While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months. The Council will be looking for evidence that this downward momentum is sustained. Governing Council is particularly watching the evolution of core inflation, and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians.”

Five-year fixed mortgage rates are slowly dropping, offering relief for prospective home buyers and those renewing their mortgage this year. This shift in mortgage rates serves as a beacon of optimism, offering a little pick-me-up for those looking to buy a house or renew their mortgage. 

The next rate announcement is scheduled for Wednesday, June 5, 2024.

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