10 June 2019

The overnight rate affects the mortgage market, especially the variable rates.

Usually, the central bank reduces its rate in order to stimulate the economy, as lower interest rates drive borrowing and spending activity.

Although not many specialists call for the rate cut in 2019, the average forecast says the Bank of Canada will keep the pause in the nearest future.

Today, Desjardins Senior Economist Benoit P. Durocher, said the rate environment will not change during the next several months, but he still pointed to certain global uncertainties, including the trade conflicts, which could make the BoC act.

“Nevertheless, the Bank can’t ignore numerous uncertainties in the world economy, especially in terms of the trade issue”, – he added.