The Bank of Canada announced on Wednesday that its overnight lending rate will rise by a quarter percent, to 1.75%.
The overnight lending rate is a benchmark used by major lending institutions to set their own pricing.
Analysts have predicted that the Canadian economy is currently sturdy enough to handle another rate hike.
Which factors impact the overnight lending rate?
Improved economic performance and consumer confidence has spurred Canada’s third increase this year.
Notable, the recently solved US-Mexico-Canada Agreement has sparked optimism in the BoC.
The economy is expected to continue growing in the near future, with GDP rising to 2.1% this year.
How can home buyers protect themselves?
Prospective buyers should start by locking in a pre-approval, which will maintain the current interest rate in the face of a rise.
It’s also recommended to work with a mortgage broker and a real estate agent while starting your home search.
This article, Bank Of Canada Increases Interest Rate to 1.75%, appeared on Shupilov News.