As expected, the Bank of Canada has decided to keep the overnight lending rate at 0.5 per cent. Read on for more on how this will affect your mortgage and the factors behind keeping the status-quo.
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Bank of Canada Governor Mark Carney continues to use the slowdown in the global economy as a crutch to leaving rates near historic lows. He’s again pointing the finger firmly at the European debt crisis indicating he can’t raise rates until the continent is able to gets its issues under control. For the first time he is using the R-word and hinting we could see a “brief recession” in Europe.
Surprise! The Bank of Canada kept their target for the overnight rate at its current level of 1%, the 9th straight time it’s done so since the last increase on September 2010. Well, let’s be honest, it really wasn’t a surprise, the decision was widely expected by industry experts. The supporting commentary on the global and national outlook was more important this time around as the markets and economists were waiting to hear the Bank of Canada’s outlook on growth.
As expected the Bank of Canada announced that it is maintaining its target for the overnight rate at 1 per cent today. This means that variable mortgage rates will remain level.
The Bank of Canada had their April rate announcement today and reported that they will be keeping their key interest rate, the target for the overnight rate steady at 0.25%. Although this doesn’t come as a surprise, the most alarming piece of news in this announcement is that they have removed the conditional commitment to …