Graham Ogden

B Comm and Realtor®

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Bank of Canada Key Policy Rate

No Key Rate Change, Again!


The Bank of Canada announced earlier today that it is keeping its key policy rate steady, which means no changes for variable rate mortgage holders; the prime rate for most lenders should stay at 3%.

 

The Bank's statement noted that "global financial conditions have deteriorated since April, with periods of considerable volatility" and that "global headwinds are restraining Canadian economic activity."

 

They continue to mention that future rate hikes may be necessary by cautioning that "some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target."

 

The Bank's next rate decision is scheduled for September 5.

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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 REALTORSĀ® Association of Edmonton.