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Canadian Interest Rate Increases Coming In April 2022

The Bank of Canada (BOC) announced in late October an end to their Quantitative Easing program put in place at the beginning of the COVID-19 pandemic. This program helped stimulate the economy, keeping the cost of borrowing for Canadian households and businesses low by purchasing large amounts of Government issued bonds, bidding up their price, thus lowering their return (ie interest rate) which in turn flowed through to lower interest rates on mortgages and business loans, encouraging borrowing and spending by Canadians.

Though the BOC is ending their quantitative easing program, they have confirmed that the Canadian economy still requires a considerable amount of monetary policy support and that they will hold interest rates at the current level, but alluded that the policy rate could begin to see a series of increases in mid 2022.

So what does this mean to you?

In this video, Surrey Real Estate specialist Steve Karrasch of Macdonald Realty, takes a look at the potential for interest rate increases beginning in April 2022 and what this means to the BC Real Estate Market.

Bank of Canada maintains policy rate and forward guidance, ends quantitative easing: https://www.bankofcanada.ca/2021/10/fad-press-release-2021-10-27/

Scotiabank sees eight Bank of Canada interest rate hikes by end of 2023: https://financialpost.com/news/economy/scotiabank-sees-eight-bank-of-canada-rate-hikes-by-end-of-2023

What do you think? Can we expect interest rates to increase in 2022? Let us know what you think in the comments!

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If you are looking for help or have any questions regarding real estate in Surrey, Metro Vancouver or the Fraser Valley, please reach out below using which ever way is most convenient.

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call or text: 604-549-5828
email: steve@krproperties.ca