The Bank of Canada key interest rate remains unchanged, but it will go up eventually with potential impacts on people in Northwestern Ontario.
That’s the opinion from local financial planner Millie Gormely after the central bank kept the rate at 0.25% but did warn it will go up eventually
“Lenders have to borrow from the Bank of Canada, so if it costs them more, it’s going to cost you more,” said Gormely. “As soon as the rate goes up at the Bank of Canada, everybody starts to notice it at some level along the line.”
Gormely also weighed in on the rising inflation rate, which hit a 30-year high in December.
“Prices are going up at the grocery store quite a bit, and it’s been a fairly sharp increase, but that’s not necessarily a factor of inflation so much as it is the ability for retailers to get product,” said Gormely.
A rise in the rate would affect costs for loans like variable-rate mortgages and other borrowing linked to the benchmark rate.
The next update is scheduled for March 2.
