Bank of Canada lowers benchmark rateThe Bank of Canada announced today that it is lowering its key rate down to 0.50 per cent given faltering global growth, a lower outlook for Canadian growth and increased downside risks to inflation. The Bank notes that “additional monetary stimulus is required to help return the economy to full capacity and inflation sustainability to target.” The next rate-setting day is September 9th. 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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