It’s been almost exactly one year since the Bank of Canada began aggressively raising its key overnight lending rate. Since then, Canadian households have struggled with ever-increasing debt payments. Borrowing costs are up a stunning 425 basis points in the last 12 months.
But the days of relentless rate hikes may be about to draw to a close. On Wednesday, the Bank of Canada unveils its latest interest rate policy. Many expect it to make good on a promise to hit the pause button.
“The bank will almost certainly hold the key overnight rate at 4.50 per cent on March 8,” said James Laird, CEO of Ratehub.ca and president of mortgage lender CanWise Financial.
In January, the central bank raised its key interest rate to 4.5 per cent, but it also indicated it was ready to end its year-long series of rate hikes.
“If economic developments evolve broadly in line …