Graham Ogden

B Comm and Realtor®

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The Bank of Canada announced today that it is holding the benchmark rate steady. Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3%.

 

The announcement noted that “with underlying inflation expected to remain below target for some time, the downside risks to inflation remain important.” And that “the risks associated with household imbalances remain elevated.” With these considerations, the Bank is maintaining its monetary policy stimulus.

 

The next rate-setting day is June 4. Eight times a year the Bank of Canada sets the rate that governs each lender’s prime rate. Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates on the other hand are based on the bond market.

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Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.

 

The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.

 

The next rate-setting day is October 22nd.

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.