Graham Ogden

B Comm and Realtor®

Direct: 1 780 908-1224 |

No Bank of Canada Rate Change

Since September 2010 the Bank of Canada has held the key rate steady. And today was no different. The Bank of Canada is staying the course and not changing the benchmark rate.

 

Today's announcement noted that "downside risks to inflation assume increasing importance" and "the Bank must also take into consideration the risk of exacerbating already-elevated household imbalances." With these considerations, the Bank is maintaining its substantial monetary policy stimulus.

 

If you’ve got a variable-rate mortgage, the prime rate should stay at 3%. The next rate-setting day is December 4.

 

Eight times a year, the Bank of Canada sets the rate that governs each lender’s prime rate. The lenders base their decision on this rate because it influences their own borrowing. Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates are different and are based on the bond market.

Comments:
No comments

Post Your Comment:

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.

Copyright 2018 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.