No Change to Canadian Interest Rate for January 2019

January 10, 2019

The Canadian interest rate is staying the same for the first two months of 2019.

The Bank of Canada (BOC) announced on January 9, 2019 that there would be no change to the 1.75% overnight interest rate for now.

Reasons for the stay include an uncertain global trade economy, particularly for the U.S. and China; oil prices have been lower than assumed; and housing investment and consumer spending is weaker than expected.

There’s good news, too. The Canadian economy is doing well. Unemployment is at a 40-year low, and “exports and non-energy investment are projected to grow solidly, supported by foreign demand, the CUSMA, the lower Canadian dollar, and federal tax measures targeted at investment,” stated the BOC.

This announcement might affect consumers in two ways:

  1. If you haven’t paid off your holiday credit card bills yet or you made a New Year’s resolution to deal with debt.

If you are in this boat, the BOC hold is good news. It means more time to pay off bills without interest rates going up.

The next BOC announcement is scheduled for March 24, 2019. That leaves nearly two-and-a-half months to pay down debt or make a long-term plan.

What to do: consider all of your variable rate (non-fixed) debts, like credit card bills, certain lines of credit, and more, and look at how much you owe. What will it take to realistically pay off these bills? If you’re not sure, contact a financial consultant for a free consultation.

For example, at Fuller Financial Solutions, we can help you review your unique personal situation to assess what debts you’re carrying and make a plan to deal with them before interest rates increase again.

  1. If you are affected by oil prices or live in an oil-producing province.

With lower oil prices, consumer spending is down – particularly in provinces where oil is produced, said the BOC.

If you’re feeling the pinch, there may be less income coming in. If this is the case, you may want to make a financial plan to get through. This might include looking at sources of equity, the amount of debt you’re carrying, creating a budget, and more.

What to do: A financial consultant can help those affected by oil prices (or any other income shifts) create a personal plan.

Canadian interest rates won’t stay on hold forever. The BOC said moderate increases are still likely, but the exact timeline will depend on the factors outlined above.

At Fuller Financial Solutions, we can help manage your finances before another interest rate change.

Contact us today for a free, no obligation consultation. Call 416-927-7200 or visit