Record-Low Interest Rates | What This Means For You?
Interest rates in Canada are at an all-time low. Rates are being pushed down by the uncertainty of Covid-19, and they're not expected to be rising anytime soon. The Bank of Canada hinted that interest rates wouldn't rise until 2023.
"Based on the Bank's new forecasts, this implies it has no intention of raising policy rates for several years," states Capital Economics economist Stephen Brown. "While the Bank may eventually raise its central scenario forecasts for growth and inflation, our forecasts are still consistent with the broad message in today's policy statement. That is, despite the huge stimulus, there is little chance that a surge in inflation will justify raising interest rates within the next few years."
What do these historically low-interest rates mean for you?
Great news, if your rate is variable, your rate is predicated on prime, which is set currently at 2.45%. You either have a variable rate of prime (2.45%) minus or plus...