The Bank of Canada announced today that it is keeping the benchmark rate unchanged, saying the risks associated with low inflation are still present. Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3%.
The announcement noted that weighing “recent higher inflation readings against slightly increased risks to economic growth leaves the downside risks to the inflation outlook as important as before. At the same time, the risks associated with household imbalances remain elevated.” With these considerations, the Bank is maintaining its monetary policy stimulus.
Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. The next rate-setting day is July 16. Fixed rates on the other hand are based on the bond market.