The Bank of Canada announced in September that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Get used to low interest rates, slow growth
Good news and bad news for homeowners; low interest rates are set to be around for a while but the Canadian economy is likely to remain sluggish.
Speaking at a conference in the UK, the Bank of Canada’s senior deputy governor Carolyn Wilkins said that weakness in the global economy poses a risk to Canadian growth with low interest rates and slow growth damaging corporate investments and impacting the labour market.
Additionally, she said that “households could experience longer and more frequent periods of shrinking incomes, making their debts more burdensome.”
The low cost of borrowing may also encourage greater credit risks with potential damage to the financial system.
Ms. Wilkins urged lenders and the wider population to “adapt to the new reality of lower potential growth.”
Speaking at a conference in the UK, the Bank of Canada’s senior deputy governor Carolyn Wilkins said that weakness in the global economy poses a risk to Canadian growth with low interest rates and slow growth damaging corporate investments and impacting the labour market.
Additionally, she said that “households could experience longer and more frequent periods of shrinking incomes, making their debts more burdensome.”
The low cost of borrowing may also encourage greater credit risks with potential damage to the financial system.
Ms. Wilkins urged lenders and the wider population to “adapt to the new reality of lower potential growth.”
Low interest rates are here to stay: Poloz
The governor of the Bank of Canada has warned Canadians that low interest rates are here for the long term, affecting retirement plans and business investment.
For homeowners, it should mean mortgage rates remain low for many years however low rates won’t help housing affordability, especially for first-time buyers.
Stephen Poloz also warned that low interest rates could impact business investment which in turn could have a negative effect on the labour market.
For homeowners, it should mean mortgage rates remain low for many years however low rates won’t help housing affordability, especially for first-time buyers.
Stephen Poloz also warned that low interest rates could impact business investment which in turn could have a negative effect on the labour market.
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