Bank of Canada Summary December 2021
NEST NEWS AT A GLANCE
- BoC Announcement: 0.25%, No Change
- Prime Rate: 2.45%, No Change
- Rate forecast: Rates are anticipated to change in Q2 or Q3 of 2022
- Economy: Inflation will continue to be elevated easing back to 2% by late 2022. The Bank will maintain the policy interest rate at the lower bound until this 2% inflation target is met.
- BoC's Full Statement: Click here
BANK OF CANADA SUMMARY
Bank of Canada maintains support for economic recovery. No significant impact on rates in the near-term.
At this time, the BoC has announced the benchmark rate remains at 0.25% - and the Prime Lending Rate remains unchanged. It anticipates any changes for policy interest rates to occur in Q2 or Q3 of 2022. This is in response to maintaining support for the economy as Canada continues a track of recovery during its reinvestment stages. The BoC will continue to monitor the monetary policy stimulus to support recovery and achieve Canada’s inflation target of 2%
Growing Economy led by rebound in consumption, including housing activity.
With a 5.5% increase in economic growth, Canada is gaining similar speed to pre-pandemic activity as restrictions continue to lift and vaccination numbers increase. As for housing activity, the BoC reported that it has seen it regain market speed, particularly in resale homes.
CPI Inflation expected to remain elevated with easing later in 2022. Buy now or wait?
In its statement, the BoC announces that inflation will stay elevated in the first half of 2022, with some easing anticipated of approximately 2% towards the latter half of next year. With supply shortages and gasoline prices still adding economic pressure, the BoC states it will continue to monitor their influence on market prices.
CREA has predicted national home prices to rise by 5.6% in 2022. With incredibly attractive variable and fixed rates available, and so many economic variables to consider, we would be happy to help you determine the best strategy and review your new or existing mortgage going forward.
Reach out to our team at Nest Mortgage today!




