September Rates Update
Something of interest for you today: Interest rates.
With a combination of rising COVID cases & the fourth wave, normalization and steadying in the real estate sector & a 0.4% reduction in the economy in July Nationally and the GDP shrinking 1.1% in the second quarter on an annualized basis. In its statement, the Bank acknowledged that Canada’s second-quarter performance had been “weaker than anticipated,” with the GDP contraction primarily reflecting a decrease in exports and the return of the housing market to more normal levels of activity, “largely as expected.”
The central bank held its target for the overnight rate at 0.25 per cent, what it calls the effective lower bound.
“The governing council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support,” the bank said in its decision.
Good news for the industry as we await to see the outcome of the election in a few weeks time. Until then, hopefully you’ve been able to enjoy the summer as much as possible and look forward to a delightful autumn which is personally my favourite time of year! Pumpkin spice forever.
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