Interest rates have finally increased: How that could affect your loans
From mortgages to lines of credit, the rise in the ‘overnight rate’ will hit Canadian consumers.
After seven years of leaving its key interest steady or cutting it to near-historic lows, the Bank of Canada has finally increased its overnight rate by 0.25 percentage points to 0.75 per cent.
The overnight rate determines the rate at which banks lend money to each other on a regular basis. In practice, changes in the overnight rate get passed on to consumers through corresponding changes in interest rates on different financial products.
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