Toronto 
If you have a variable mortgage, you can heave a sigh of relief as the Bank of Canada is holding its interest rate steady at the overnight rate at the lower bound of 0.25 per cent.
The Bank rate will remain at 0.5 per cent and the deposit rate at 0.25 per cent.
As a reason behind keeping the rates steady Bank of Canada through the press release states, “Economic growth is then expected to bounce back and remain robust over the projection horizon, led by consumer spending on services, and supported by strength in exports and business investment. After GDP growth of 4½ % in 2021, the Bank expects Canada’s economy to grow by 4% in 2022 and about 3½ % in 2023.”
The Bank of Canada is projecting global GDP to grow from 6¾ per cent in 2021 to about 3½ per cent in 2022 and 2023.
Through the monetary policy report released today, the Bank of Canada says due to supply chain constraints and rising food prices the inflation will remain around five per cent for the first half of 2022.
