market update - July 2020

July 17, 2020

Bank of Canada (BoC) announced on last Wednesday that it would continue to hold its target for the overnight rate at 0.25% to help households and businesses recover from the COVID-19 Pandemic. It is interesting to note that the new BoC Governor, Tiff Macklem has given great certainty in when to increase the rate via a very specific measure. He made it clear that the overnight rate will not go up until inflation reaches 2%, which, he predicted would probably take a minimum of two years, assuming that we do not experience a second wave of COVID-19 in Canada.

The recent extraordinary efforts made by BoC have included aggressive rate cuts and large-scale asset purchases. As a result, our lenders have sufficient and low cost funds to lend and we are all surprisingly busy and pleased in securing low cost solutions for our customers.

As always, please do not hesitate to contact us if you need an answer to any of your financing questions. We are only a phone call away, and we always pick up our calls during business hours!

Have a great summer, everyone!