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BOC Interest Rate Hike - What does it mean?

Thursday Sep 07th, 2017

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The Bank of Canada announced an increase in the key interest rate this week. The rate now sits at an even 1%. This hike comes shortly after another 25-basis-point rise in July this year.

 

To put it into perspective, the benchmark interest rate is back where it was before two cuts were made in 2015 and we saw interest rates at an all-time low.

 

In a statement made Sept 6, the bank said solid employment and wage growth led to stronger consumer spending indicating that growth in Canada is broader across markets and self-sustaining.

 

To read a little more about the increase, check out this MoneySense article here.

 

Be sure to check out the linked articles as well, MoneySense offers some valuable resources on the WHY and WHAT this could mean for you.