Well, the Conservative Government is now worried that Canadians are piling on too much debt while interest rates are low and will ultimately get into trouble when interest rates increase. Is their fear valid?
Positive economic data from both sides of the border has forced government bond yields up. This will most definitely halt our falling mortgage rates, but will we begin to see an increase?
A summary of 8 key take-aways from CIBC’s head economist Benjamin Tal’s discussion at a mortgage industry function last week in Toronto. His outlook is primarily positive with a hint of caution. The good news is we are in better shape than the US….the bad news is we can’t help but feel the ill effects of our southern neighbours.
A brief explanation of why the Bank of Canada is still sticking to their promise of leaving the prime lending rate where it is until June 2010. Even though we are starting to hear more good news about the economy there are still some fundamentals that need improving before we can say we are out of the woods.
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 of Canada announced this morning 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.
Most Analysts agree the Bank of Canada will not raise the prime lending rate when they meet on Thursday and continue to hold rates steady until June 2010.
| 6 Months | 4.60% | 3.85% |
| 1 Year | 3.65% | 2.49% |
| 2 Years | 3.95% | 2.95% |
| 3 Years | 5.04% | 3.40% |
| 4 Years | 5.14% | 3.69% |
| 5 Years | 5.39% | 3.69% |
| 7 Years | 6.30% | 4.95% |
| 10 Years | 6.50% | 5.20% |
| Variable | NA | 1.75% |
