Sept. 6, 2023
The Bank of Canada holds interest rate steady at 5%. In its announcement today, the Bank of Canada opted to maintain its benchmark interest rate steady at 5%. The move was widely expected, after the recent series of hikes and holds since early 2022.
This comes after the Bank of Canada raised interest rates at its previous two decision meetings. Altogether, the bank has raised its key interest rate ten times since March of 2022, bringing it from near 0% to the highest level since 2001.
Many economists warn the impact of rate moves can take one to two years to be fully felt, so after raising the lending rate from approx. 0% to 5% in a year-and-a-half the impact of earlier moves is just being felt now.
"It was great to see the Bank of Canada listen to Premiers such as David Eby and Doug Ford who urged the bank to hold off on any more increases. I'm not expecting to see further rate increases this year. Now was the right time to be holding rates. As Doug Ford said in his letter to the bank, Canadian families and businesses cannot afford the crushing impact of further rate hikes." - Darcy Nyrose
For those looking to purchase real estate, we recommend working with your bank or a mortgage broker to get pre-approval and a rate hold before you start looking. This ensures we are looking at homes that meet your ideal monthly payments and overall budget. As well, that when you're ready to purchase, you have the best rate and payment possible.
Recent History for Bank of Canada Key Interest Rate