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Email this10:59 am
December 20, 2016
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Bank of Canada maintains overnight rate target at 1¼ per cent
FOR IMMEDIATE RELEASE
Media Relations
613-782-8782
Ottawa, Ontario
May 30, 2018
Available as: PDF
The Bank of Canada today maintained its target for the overnight rate at 1¼ per cent. The Bank Rate is correspondingly 1½ per cent and the deposit rate is 1 per cent.
Global economic activity remains broadly on track with the Bank’s April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. Global oil prices have been higher than assumed in April, in part reflecting geopolitical developments.
Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April, largely because of recent increases in gasoline prices. Core measures of inflation remain near 2 per cent, consistent with an economy operating close to potential. As usual, the Bank will look through the transitory impact of fluctuations in gasoline prices.
In Canada, economic data since the April MPR have, on balance, supported the Bank’s outlook for growth around 2 per cent in the first half of 2018. Activity in the first quarter appears to have been a little stronger than projected. Exports of goods were more robust than forecast, and data on imports of machinery and equipment suggest continued recovery in investment. Housing resale activity has remained soft into the second quarter, as the housing market continues to adjust to new mortgage guidelines and higher borrowing rates. Going forward, solid labour income growth supports the expectation that housing activity will pick up and consumption will continue to contribute importantly to growth in 2018.
Overall, developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target. Governing Council will take a gradual approach to policy adjustments, guided by incoming data. In particular, the Bank will continue to assess the economy’s sensitivity to interest rate movements and the evolution of economic capacity.
The next scheduled date for announcing the overnight rate target is July 11, 2018.
11:39 am
March 11, 2018
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Since the BOC sounds like they are going to raise the rate in July, is there any point in buying a GIC before then? Or is that baked into the rates offered now?
12:05 pm
December 17, 2016
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Pipersierra said
Since the BOC sounds like they are going to raise the rate in July, is there any point in buying a GIC before then? Or is that baked into the rates offered now?
And what will you do if there's no increase announced in July ... wait until September?
12:17 pm
March 5, 2018
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Pipersierra said
Since the BOC sounds like they are going to raise the rate in July, is there any point in buying a GIC before then? Or is that baked into the rates offered now?
I'm waiting. The HSA rates (at Tangerine and others) while I wait are quite decent. So I'm waiting. I've GIC-laddered the bulk of funds, but have held back some while I wait. I did the math, and it works better for me to wait. But it all depends on your own investment picture and how the math works for you. And of course something can happen, and the rates can do down instead of going up. So it's a calculated risk.
1:11 pm
November 21, 2015
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Pipersierra, Omniadirect.ca offers 3%/1Y/250,000 DICO coverage, through internet application plus first cheque mailing. I consider it a safe bet in an interest rates rising environment. And you are, in the meantime - NOW, earning the 3%. Warning: no access to the funds for 1Y.
1:26 pm
December 17, 2016
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Blue said
I'm waiting. ... I did the math, and it works better for me to wait. But it all depends on your own investment picture and how the math works for you.
So, what are your 5-year GIC rate projections, assuming there will be a BoC rate increase in July?
7:12 am
March 5, 2018
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Top It Up said
So, what are your 5-year GIC rate projections, assuming there will be a BoC rate increase in July?
Hoping for a few outlier offers of 4%. We've had two smaller FIs offer that already in the spring. So we'll see. Not sweating it, just hopeful. LOL. We'll assess and make a decision then, since it's just two months away. We're also tracking US dollar account rates, since those have been quietly moving up also in the last few months from near zero.
7:49 am
December 17, 2016
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Blue said
Hoping for a few outlier offers of 4%. We've had two smaller FIs offer that already in the spring.
I only remember one 4% offer and that was exclusive to BC residents only - good luck in your quest.
3:32 pm
October 21, 2013
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there was a 4% offer in Ontario at a credit union which lasted several weeks.
4:46 pm
December 17, 2016
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Loonie said
there was a 4% offer in Ontario at a credit union which lasted several weeks.
Ontario residents only - in fact you needed to go to a bricks and mortar to sign up.
10:48 pm
October 21, 2013
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Top It Up said
Ontario residents only - in fact you needed to go to a bricks and mortar to sign up.
Yup!
It was a great deal.
6:09 am
February 13, 2018
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Top It Up said
Ontario residents only - in fact you needed to go to a bricks and mortar to sign up.
Meridian CU? It was open to residents outside ON? I am one of them at 3%!
6:12 am
February 13, 2018
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gamgam said
Meridian CU? It was open to residents outside ON? I am one of them at 3%!
Sorry meant to say Northern CU! I was there at 4%! Oops!
Been on the move since then.
10:09 am
March 5, 2018
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gamgam said
Sorry meant to say Northern CU! I was there at 4%! Oops!
Been on the move since then.
It was Ganaraska CU at 4% for 5 years (and also redeemable). You had to go to one of their branches for the initial sign-up. We went out to Port Hope for the deal.
10:31 am
February 13, 2018
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Blue said
It was Ganaraska CU at 4% for 5 years (and also redeemable). You had to go to one of their branches for the initial sign-up. We went out to Port Hope for the deal.
Loonie said
there was a 4% offer in Ontario at a credit union which lasted several weeks.
Blue, Loonie was referring to a 4% offer lasting several weeks and not 5 yrs. I believe this was Northern CU, which was available to residents outside Ontario. Hoping before 5 yrs are up we have some better interest rates.
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