March 2023 Bank of Canada Rate Update The Bank of Canada did NOT increase or make changes to current rate! In todays announcement the bank kept good on its promise to hit a "pause" button for now on the campaign to raise rates to beat inflation. This decision reflects that its strategy on rate increases to reduce inflation is having a desired effect. While the majority of economists expect that the rate will remain unchanged for the remainder of the year, the Bank still expresses it " is prepared to increase the policy further" IF required to restore inflation to its 2% target. If your mortgage is coming up for renewal, short term rates are remaining the best options. The reason is with potentially lower rates and a likely recession in the horizon, a shorter term will renew earlier, saving a borrower from incurring penalties if they are wanting or needing to break the mortgage. Current interest rates on 1-2 year terms are higher so if locking in for a longer term fits you, our best advice is to choose a medium length term such as 3 year fixed rate where possible.
The next scheduled BOC meeting is : April 12
