09/10/2022
The Bank of Canada has announced that they are increasing the policy rate by .75%. They are sighting that Global inflation remains high so in response central banks around the world are tightening monetary policy. In Canada, inflation has eased to 7.6% from 8.1% due to a drop in gasoline prices. However, excluding gasoline inflation increased.
Our economy continues to operate in excess demand, consumption grew by 9.5% and business investment was up by nearly 12%. The Bank does expect the economy to moderate in the second half of this year and bring demand more in line with supply. However, given the outlook for inflation the Governing Council still judges that the policy interest rate may need to rise further.
The next Bank of Canada announcement is October 26th. If you have any questions or are concerned about your mortgage payments, reach out your Mortgage Alliance Professional. They can review your situation and offer you unbiased advice at no cost to you.
Read the full announcement here: https://www.bankofcanada.ca/2022/09/fad-press-release-2022-09-07/
