Bank of Canada June 9, 2021 Rate Decision: Holds at 0.25%

On June 9, 2021, the Bank of Canada held the target for the overnight rate at 0.25%. The Bank Rate was 0.50%, and the deposit/lower-band rate was 0.25%.

What happened

This was a scheduled decision. Because the target was unchanged, this decision has no new effective date.

Why the Bank said it acted

The official release was titled “Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, continues quantitative easing.”

Read the official Bank of Canada release for 2021-06-09.

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 2021-06-09 showed 2021-06-09: typical posted prime 2.45%, one-year conventional mortgage 2.79%, three-year 3.49%, and five-year 4.79%. 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.