Access Credit Union follows Bank of Canada lead and raises interest rates –

Access Credit Union followed the lead of the Bank of Canada (BoC) and raised its interest rates.

On Wednesday, the central bank raised its key rate for the second time in two months by half a point to 1.5%.

“We follow the Bank of Canada rate,” said Larry Davey, President and CEO of Access Credit Union.

As a result, Access’s loans, fixed deposits and prime rates each jumped half a point.

“It’s still very, very low to borrow compared to historical numbers,” Davey added.

“I think it’s really important for everyone to remember that this latest rate hike has only brought rates back to where they were before the pandemic,” he added. “The Bank had stepped up and really lowered pandemic rates to keep pushing the economy forward, so now they’re pushing it back. It’s expected that as the supply chain improves and the unemployment rate continues to fall will improve, and it is very low right now, that there will be a temper to the inflation rate.And once the inflation rate starts to fall, the Bank will probably stop to raise interest rates.

That being said, Davey said the Bank of Canada is expected to raise interest rates another two or three times in 2022.

“How much is difficult to determine… they could do it a quarter point at a time rather than a half point,” he added.

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