The Bank of Canada increased its prime lending rate earlier today. This is the first time they have done so in over 2 years. The bank’s Governor, Mark Carney, announced earlier today that the prime lending rate would be increased by 0.25%. This announcement marks the first interest rate increase by any of the G8 countries. The prime lending rate affects those with variable rate mortgages and lines of credit.
The bank's next interest rate announcement is expected on July 20 where many experts predict a further rate increase of 0.25%. However, the Bank of Canada announced that this may not be the case. Much of the decision to raise interest rates is based on the health of the domestic economy as well as global factors such as the financial crisis in Europe.
Please feel free to contact me should you have any questions, concerns or require a pre-approval or mortgage assistance!
Please click HERE to read CBC's story on the interest rate hike.