03/10/2021
Contact me to discuss how you may be able to take advantage of the low interest rates that are available now.
On March 10, The Bank of Canada (BOC) made its second interest rate announcement of 2021. The Target Overnight Rate will remain at 0.25%, the bank rate is 0.5%, with a deposit rate of 0.25%.
The BOC is â⌠maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week.â
Canadaâs economy is proving to be more resistant than initially predicted. The BOC reported, âIn Canada, the economy is proving to be more resilient than anticipated to the second wave of the virus and the associated containment measures. Although activity in hard-to-distance sectors continues to be held back, recent data point to continued recovery in the rest of the economy. GDP grew 9.6% in the final quarter of 2020, led by strong inventory accumulation. GDP growth in the first quarter of 2021 is now expected to be positive, rather than the contraction forecast in January. Consumers and businesses are adapting to containment measures, and housing market activity has been much stronger than expected. Improving foreign demand and higher commodity prices have also brightened the prospects for exports and business investmentâ.
However, there are still concerns, â Despite the stronger near-term outlook, there is still considerable economic slack and a great deal of uncertainty about the evolution of the virus and the path of economic growth. The labour market is a long way from recovery, with employment still well below pre-COVID levels. Low-wage workers, young people and women have borne the brunt of the job losses. The spread of more transmissible variants of the virus poses the largest downside risk to activity, as localized outbreaks and restrictions could restrain growth and add choppiness to the recovery,â the Bank stated.
What does this mean for you?
The cost of borrowing continues to remain low and is expected to remain low through 2023. Lower interest rates translate to more money to spend (or save), creating a ripple effect of increased spending throughout the economy. It may be a great time to consider purchasing a home, buying a new car, debt consolidation, or refinancing your mortgage.
Our team is happy to connect with you to discuss how you may be able to take advantage of the low rates currently on offer. Reach out to us at [email protected] or call 647-494-0094 x 206.
Read more about the interest rate and monetary report announcement here: https://www.bankofcanada.ca/2021/03/fad-press-release-2021-03-10/.
Cheryl Geness Richmond Hill Board of Trade Lauriston Gardner Lauriston Gardner Merite Mortgage International Brokers LTD. Jasmin Daley Merite Mortgage International Brokers Ltd.
