Bank of Canada raises interest rate for 1st time in 7 years to 0.75%

The Bank of Canada has raised its key interest rate as expected to 0.75 per cent — the central bank’s first move upward in the cost of borrowing in seven years.

The bank’s target for the overnight rate — at which major financial institutions make one-day loans to each other — moved up by one-quarter of a percentage point from 0.50 per cent.

  • Clink9

    Isn’t that a 50 % increase from .5 ?

    • Clausewitz

      Don’t care. I renewed three weeks ago because I knew this was coming. What do you expect from the Liberals. Must be part of the deficit taking care of it’s self.

      • This is a repeat of his father’s mess.

        • dance…dancetotheradio

          We’ve only just begun…

          • People brought this on themselves.

          • dance…dancetotheradio

            I’ve been studying this issue since the American Bubble burst.
            It’s our turn.
            I knew that Trudeau couldn’t keep that genie in the bottle.

          • His masters couldn’t do so.

          • Alain

            You mean like voting for the party that said the budget will balance itself?

          • I can’t believe to this day that people overlooked that.

      • Clink9

        Yep. Locked in last week myself.

    • dance…dancetotheradio

      A $300,000 mortgage is only $750 more expensive annually due to this rate hike.
      Now, if rates increase 2.5% then you’re looking at $7500 annually or $670 a month.

      • canminuteman

        I could be wrong, but as clink9 says above, this is not a 0.25 percent increase, it’s a 50 percent increase. The annual interesting on 100$ at 0.5% would be 50 cents. At 0.75 percent it’s 75 cents. If you have a mortgage and you are at the point where 80% of your payment is interest, and that 80% goes up 50%, your monthly payment just went up 40 % . Although just because the overnight rate goes up 50% doesn’t mean the mortgage rate will go up the same amount.

        • dance…dancetotheradio

          The prime rate was 0.50 percent.
          It went up by fifty percent to 0.75 percent.
          It is a fifty percent increase on the existing rate.
          That’s not the rate the banks charge retail customers.

  • DMB
    • dance…dancetotheradio

      I am. I rent.

  • dukestreet

    Why would anybody be surprised with Trudope at the helm,throwing cash we don’t have to evrybody but Canadians.

  • Frances

    Anyone with a floating-rate loan – and there are a lot of them out in the business world – is noticing an immediate effect.