Bank of Canada hikes key interest rate by full percentage point in surprise move
You've probably heard the news by now: The Bank of Canada has increased its benchmark interest rate by a full percentage point, taking a larger than expected hike to tame decades-high levels of inflation.
The central bank’s key interest rate now sits at 2.5%, a drastic shift from the 0.25 percent rate seen at the start of the year.
The Bank of Canada said in a statement that it decided to “front-load the path to higher interest rates” amid a hot economy, high and broadening inflation, and expectations from consumers and businesses that high price growth will stick around longer.
So what does this all mean?!
Watch as one of our Mortgage Partners, Danielle Hill at Mortgage Advice explains what the interest rate hike means for you - whether you have an existing mortgage or are looking to borrow:
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