Bank of Canada raises interest rate to 0.5%

The Bank of Canada is raising its key interest rate to 0.5% to battle high inflation and rising inflation expectations. Inflation is running at a 30-year high and the central bank notes it’s concerned Canadians may be starting to believe that it will stay higher for longer.

What does this mean for Canadians? Recent data from The Angus Reid Institute found that over half (53%) of Canadians reported being unable to keep up with the cost of living. And following the Bank of Canada’s announcement that it will raise its policy rate, that means less money is going towards the principal on Canadians’ mortgages and other debts.  Financial Educator with the Credit Counselling Society, Mark Kalinowski says the hike has been a long time coming.

And for those looking to buy or sell a home, Courtney Atkinson with the Atkinson Team at eXp Realty says, the interest rate hike is not likely cool off the southern Alberta market.