The Bank of Canada just announced their latest interest rate! This one has been brought up by three-quarters of a percentage point in mission to settle the impacts of inflation.
This rate will also impact how Canadian consumers and businesses use up their mortgages, lines of credit and even their savings accounts. At the start of the year, the interest rate was at 0.25 per cent, and now after this hike, we are seeing the highest level of the bank’s rate since 2008!
The bank is making it crystal clear that its purpose is to continue lending rates to get inflation back down below three percent. Experiencing five large rate hikes in six months has been an aggressive method in tightening the cycle, and it is still not over. It takes over two years to really see the relief that comes with these rate hikes, which means that these rate hikes are going to stick around through 2023.
"It's going to be very hard to think that this won't have a high impact on consumers' budgets and even possibly on things like insolvencies.
