The Bank of Canada holds at 1.00% on December 6, 2017. Employment improves while the Bank watches the response to higher rates.
The decision at a glance
| Policy measure | Announcement |
|---|---|
| Overnight target | 1.00% |
| Change | No change |
| Bank Rate | 1.25% |
| Deposit rate | 0.75% |
Employment improves while the Bank watches the response to higher rates
Strong employment and improving wages support household spending, while business investment and public infrastructure spending contribute to growth. Exports fell more than expected in the third quarter after exceptional strength earlier in the year, but newer trade data support the Bank's expectation of renewed export growth.
Inflation is slightly above the Bank's forecast, partly because of temporary gasoline-price effects. Core measures have edged higher as spare capacity diminishes. Revisions show a higher level of GDP, but also imply higher productive capacity, so the Bank does not treat the revision alone as evidence that the economy is overheating.
The Bank still expects higher interest rates to be needed over time, but it holds while assessing sensitivity to the earlier increases, wage growth and remaining labour-market slack. The practical question for households is how the existing rate moves have changed their own cash flow. Before a purchase or renewal, compare the contract's payment mechanics and total ownership costs rather than extrapolate a single growth or inflation report.
What this means for a mortgage
The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.
Put the announcement into a Greater Sudbury plan
Buying or renewing
Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.
Preparing to sell
Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.
Official announcement: Bank of Canada, December 6, 2017. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.
For context, compare the October 25, 2017 hold at 1.00% with today’s decision.
For a local plan, explore the Buyer Experience or Seller Experience.
Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage