Bank of Canada leaves the key rate unchangedThe Bank of Canada announced today that it is holding its key rate steady. Great news if you have a variable-rate mortgage or home equity line of credit, and for those looking to buy, renew or refinance this spring.
The announcement noted that “the impact of the oil price shock on growth will be more front-loaded than predicted in January, but not larger.” And that the “Canadian economy is estimated to have stalled in the first quarter of 2015.”
The next rate-setting day is May 27th. 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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