June 29, 2017
The Loonie’s Making Big Moves
The loonie climbed to its highest level in four months (76.44 cents US) after Canada’s central bank head hinted at a possible interest-rate hike. During an interview yesterday morning, Bank of Canada Governor Stephen Poloz said the cuts introduced in 2015 to offset the impact of falling oil prices seemed to “have done their job,” adding the country experienced “surprisingly” strong growth in the first quarter of 2017. CTV News
Why You Should Care
If there’s an interest rate hike, it would be the first one in seven years. Economists have predicted that one’s coming some time soon, since rates have been flat since 2008. While there’s no need to panic, a hike would affect Canadians with variable mortgages, so experts suggest trying to lock in a low rate as soon as possible and for as long as possible.
The Bank of Canada’s next policy meeting is scheduled for July 12.