March 6, 2024 Bank of Canada Rate Announcement

Bank of Canada Rate Announcement

Borrowers can relax a little regarding today’s Bank of Canada’s rate announcement. The overnight target rate stayed unchanged at 5.00%. The Bank of Canada is taking it easy and waiting for more solid CPI data before making any big moves. The economy is looking decent, but experts think it’s just a temporary thing, not a threat to inflation. 


If you’re looking for a mortgage in March, hope for two things: first, that inflation keeps going down, and second, that bond yields cooperate by staying low. If things go well, we might see some relief in mortgage rates this summer.


In its statement, the Bank said it’s “still concerned” about the risks to the outlook for inflation and that it “wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour.”


This is the Bank of Canada’s fifth consecutive rate hold, though expectations are rising that rate cuts will be forthcoming by the middle or second half of the year. If inflation stays in check, there’s a good chance for some relief for mortgage holders. Recently, there’s been some positive news with inflation and GDP growth, leading to lower yields and slightly decreased mortgage rates.


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, April 10, 2024.

Back to the Blog Index



Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.