Skip to main content

The Bank of Canada rate announcement on March 7, 2018 was much less dramatic than the January statement: the current interest rate held at 1.25%.

For the first time in several months, the BOC referenced housing data as a factor influencing the Bank of Canada (BOC) rate announcement decision.

The BOC noted “strong housing data in late 2017” and “softer data” at the beginning of this year. A press release from the BOC indicated the higher numbers in late 2017 could have been from a surge of demand before new mortgage rules were introduced on January 1, 2018.

“It will take some time to fully assess the impact of these [the new mortgage guidelines and policy measures], as well as recently announced provincial measures, on housing demand and prices,” the BOC stated.

The mentioned “recently announced provincial measures” could be referencing new tax policies introduced in B.C. — an increase to the foreign-buyers’ tax and new property tax largely targeting out-of-province owners, including those who live in other parts of Canada.

One of the BOC’s stated goals with increasing interest rates was lowering the record-high level of Canadian household debt. During the March 7 announcement, the BOC said that household credit growth has decelerated for three consecutive months.

Other factors that played into the BOC’s decision to hold the interest rate at 1.25% included inflation and wage growth.

The BOC interest rate has increased three times since July of 2017, going from 0.5% to 0.75% in July, to 1% in September of 2017, and 1.25% in January of 2018.

The next BOC rate announcement is scheduled for April 18, 2018. The BOC Governing Council has said they will take a cautious approach and factor in several new developments, such as the recent federal budget.

The full text of the March 7 BOC rate announcement can be found at

Are you concerned about how BOC interest rate increases will affect your mortgage business? Purview’s technology can help you track down new leads and mitigate fraud risk. Learn more by calling 1-855-787-8439.