Mortgage Blog

Bank of Canada Rate Annoucement - March 10, 2021

March 10, 2021 | Posted by: Ken Fadel

The BoC kept its target for the overnight rate unchanged at 0.25% and reiterated its commitment to keeping it there, delaying any potential policy changes.

In a statement released today, the BoC again announced it had no plans to raise borrowing costs until the damage created by the pandemic is fully repaired; something their projections don't anticipate happening until 2023. The BoC also recommitted to purchasing at least $4 billion worth of Canadian government bonds a week to aid the recovery with the condition that these purchases would be reduced once the economy regains its footing.

Economists have started to suggest the BoC will soon start reducing these asset purchases as signs of a more robust economy begin to emerge.  BoC officials acknowledged the economy has improved more than forecasted, but also noted considerable slack remains as the pandemic continues to evolve.

The next scheduled rate announcement is set for April 21.

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