Bank of Canada March 13, 2020 Rate Decision: Cuts at 0.75%

On March 13, 2020, the Bank of Canada lowered the target for the overnight rate by 50 basis points to 0.75%. The Bank Rate was 1.00%, and the deposit/lower-band rate was 0.50%.

What happened

This was an unscheduled decision. The announcement date was 2020-03-13; the official effective date was 2020-03-16.

Why the Bank said it acted

The official release was titled “Bank of Canada lowers overnight rate target to ¾ percent.”

Read the official Bank of Canada release for 2020-03-13.

Mortgage-rate context available on the decision date

The Bank of Canada's policy rate influences borrowing conditions, but it is not a mortgage offer. The Bank does not directly set an individual mortgage rate. Lenders set their own rates, and a borrower's offer depends on the lender, product, term and qualification details.

The Bank of Canada weekly figures available on 2020-03-13 showed 2020-03-11: typical posted prime 3.45%, one-year conventional mortgage 3.39%, three-year 3.94%, and five-year 5.19%. These are typical posted rates for six major chartered banks, not discounted offers or borrower quotes.

Planning a Greater Sudbury purchase or sale

Use the decision as one dated input. Buyers can compare a lender's written rate, payment, term and qualification details with their housing budget. Sellers can evaluate current competing listings, recent comparable sales and their own timing. This decision is not presented as the cause of a local housing outcome.