The Bank of Canada has announced this morning the increase of its benchmark lending rate to 0.75%. Effective tomorrow, lenders will increase their prime rate to 2.75% from 2.5%.
The Bank of Canada's statement was very cautious regarding economic growth and it has revised its growth outlook for the next few years due to the global uncertainty in Europe and the US. This will probably mean slower increases in the prime rate in the future. Canada is the only G7 country to increase its prime lending rate since the recession.
Nawar Naji, AMP
Mortgage Broker - Mortgage Alliance
Brokerage License #10530
www.GTAmortgageAdvisor.ca
