The Bank of Canada interest rate is back down to 0.25% — the same rate it was in July of 2017 before it began increasing. Read on for what this means for you…
From March 4 to April 15, 2020, the Bank of Canada (BOC) interest rate has undergone significant changes.
- On March 4, it decreased from 1.75% to 1.25%.
- On March 13, it lowered again from 1.25% to 0.75%.
- On March 27, it went further down from 0.75% to 0.25%.
- On April 15, 2020, the 0.25% interest rate was maintained.
The main reason for these recent changes is, of course, the novel coronavirus (COVID-19).
COVID-19 was officially declared a global pandemic on March 11, 2020 by the World Health Organization (WHO).
Since then, it has had enormous public health and economic impacts worldwide.
“The necessary efforts to contain the COVID-19 pandemic have caused a sudden and deep contraction in economic activity and employment worldwide,” the BOC said.
In Canada alone, there has so far been nearly 30,000 confirmed cases and nearly 1,000 deaths.
Economically, in March 2020, more than 1 million Canadians lost their jobs. More than 6 million applied for the Canadian Emergency Response Benefit (CERB) in early April.
The lowered interest rates are meant to help weather the COVID-19 storm and keep credit accessible.
“This helps ensure that households and businesses continue to have access to the credit they need to bridge this difficult time, and that lower interest rates find their way to ultimate borrowers,” the BOC said during the April 15 announcement.
Read the full April 15 Bank of Canada announcement here: https://www.bankofcanada.ca/2020/04/fad-press-release-2020-04-15/
The next Bank of Canada announcement is scheduled for June 3, 2020.
Ongoing Financial Help
The COVID-19 pandemic has been a truly unprecedented situation and lower interest rates are one way that consumers and businesses alike can continue to stay afloat during this time.
Lower interest rates can make credit more accessible and decrease the amount you have to pay back on current unsecured debts.
However, it’s also important to take a full view of your financial picture and make sure that you really can afford the credit you take out. You also want to work with a lender that reports to the Canadian credit bureaus so you can rebuild or maintain good credit during this time.
If you are looking for financial assistance during this time, Prudent Financial is here for you. We offer bad credit car, personal, and home loans in Toronto and the GTA, plus secured loans for the self-employed.
We are a quick click or call away. Phone 1-888-852-7647 or visit www.prudentfinancial.net.