Last Interest Rate Decision of 2020

2020 has been one of the most active for the Bank of Canada. The Bank of Canada made it’s 10th and final interest rate decision of the year this month.

The overnight rate was unchanged, after being reduced three times early in the pandemic, in March.

This is good news for borrowers as it means that borrowing costs will remain low as we head into 2021.

The BOC hasn’t ruled out lowering rates from 0.25% in 2021. We are told that negative interest rates continue to be off the table at this time. Alternate methods continue to be evaluated, including the purchase of bonds, and adjustments to borrowing rates targeting specific types of debt.

“To be sure, the Bank of Canada isn’t predicting economic conditions will get worse.”
Source: Financial Post

We will continue to keep you updated on rates and changes to borrowing programs. As always, the Mortgage Winners team is committed to giving you the clarity and guidance to make informed decisions towards long-term economic prosperity and growth.

Bank of Canada holds interest rate at 5%