What Causes the Variable Rate to fluctuate?
- The Bank of Canada meets 8 times each calendar year to analyze the Canadian economy and to decide on whether they should lower the overnight rate, raise the overnight rate, or keep rates neutral.
- At these meetings, the BoC will also announce any policy changes or updates that would otherwise affect the general Canadian economy.
- Historically, the government does not make changes to the overnight rate when they meet.
- Over the past 10 years, we’ve seen the variable rate stay fairly flat, with minimal fluctuations.