The Bank of Canada today increased its target for the overnight rate to 3.75%, a half percent increase, following a 0.75 percent increase in the month of September.
The world economy is suffering and because of global inflation reaching close to 8%, we will see these high rates for another 1 to 2 years.
The prime is now 5.95% and all Variable and LOC products will be based on prime, meaning the payments will go up.
All renewals and refinances will take a hit on these high-interest rates including new purchases.
The next announcement will be on 7th Dec 2022
Below chart: courtesy https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
