Bank of Canada Keeps Prime Rate Unchanged
The Bank of Canada announced today that it will leave its key interest rate unchanged and restated its commitment to holding this rate steady until mid-2010, conditional on the outlook for inflation. The Bank noted in its statement that a recovery in economic activity is under way in Canada, “supported by monetary and fiscal stimulus, increased household wealth, improving financial conditions, higher commodity prices, and stronger business and consumer confidence.” However the Bank expects a high Canadian dollar to offset recent favourable developments in the economy.
Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate.
Over the past week, the pricing of new variable-rate mortgages in relation to the prime rate has improved. A couple of lenders have started offering a slight discount to the prime rate on 3 year variable mortgages.
While pricing for fixed-rate mortgages is not directly affected by today’s announcement, rates on some fixed products have been increasing in the past week.
Related posts:
- Bank of Canada Keeps Rates Steady The Bank of Canada announced this morning that it will...
- Why Bank of Canada is leaving rates alone A brief explanation of why the Bank of Canada is...
- 50/50 Mortgage offers great 5 year mortgage rate I can now offer my clients the very low 5...
- Bank of Canada Raises Rates – What Next? With the recent rate increase by the ban of Canada...
- Variable Mortgage Rates Staying Low??? Most Analysts agree the Bank of Canada will not raise...
Related posts brought to you by Yet Another Related Posts Plugin.
Bank of Canada Raises Rates – What Next?
Yesterday the Bank of Canada (BOC) finally made good on ...
Variable vs Fixed – Take the survey
With the recent increase in fixed mortgage rates over the last month and the talk of an upcoming rate hike ...
Ottawa Considers Tighter Mortgage Regulations
It appears the powers that be in Ottawa read the newspaper. The media has been reporting for the last couple ...
Leave a comment