The Bank of Canada raised its benchmark interest rate by 25bps to 1.75 percent on October 24th 2018 from 1.5 percent, as widely expected. It marks the third increase this year and the highest rate since December 2008. Policymakers said that more hikes will be needed to keep inflation close to the target of 2 percent, as economy stays strong and the new US-Mexico-Canada Agreement (USMCA) would reduce economic uncertainty.
The bank also mentioned evidence that Canadian households are adjusting well to higher borrowing costs. Contact Leslie to find out how higher interest rates will affect your house hunting!
