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.