The bank of Canada Hikes Key Interest Rate

Increasing interest rate

Announcement, March 2nd, 2022

On March 2nd, The Bank of Canada announced the increasing interest rates . This marks the first major change in almost 2 years. The rate increased from 0.25% - 0.50% which The Bank of Canada had indicated back in January 2022. Ultimately, the rate hike affects the rates that Canadian consumers get on things like mortgages, line of credit, and savings accounts.

March 2nd, 2022 marks the first time The Bank of Canada has raised the rate since 2018. Previous to the pandemic, the bank's rate was 1.75&, but the pandemic caused the rate to quickly drop down to 0.25% to help with the economy.

What now?

Inflation & Prices

Inflation increasing quickly is a main reason for this interest rate hike. Russia's invasion of Ukraine could potentially contribute to further inflation and negative impacts on global growth, this also goes along with the rising prices of oil and gas.

If you have a variable rate mortgage please reach out to me and we can discuss further steps. As well if you have any questions regarding your mortgage concerns especially since The Bank of Canada's most recent announcement, Please give me a call, I am more than happy to chat with you!

What to expect next

April 2022

The Bank of Canada's next announcement is set for April 13th. Stay tuned for more information! Please do not hesitate to contact me with any further questions regarding the latest announcement or any of your mortgage needs!

The greatest compliment I can ask for is a referral to a friend or family!

​Lucas Burns

613-298-1522

lburns@martelmortgages.ca