The Bank of Canada interest rate has decreased to 1.25% as of March 4, 2020.
The interest rate was previously 1.75% and had remained there since October of 2018.
The March 4 rate cut was widely predicted by economists following the U.S. Federal Reserve decrease on March 3. However, many predicted that the Canadian interest rate would lower to 1.5%.
Instead, the BOC decreased the interest rate even further — by 50 basis points to 1.25%.
On the Purview blog, we are examining the reasons for the Bank of Canada’s decision and what could be in the forecast ahead: https://www.purview.ca/bank-of-canada-interest-rate-announcement-march-2020/
On the GeoWarehouse blog, we take a look at what the interest rate decrease, paired with recent mortgage stress test changes, could mean for the spring real estate market: https://www2.geowarehouse.ca/bank-of-canada-interest-rate-announcement-march-2020/
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