As expected, the Bank of Canada announced today that it is keeping the benchmark rate unchanged. Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3%.
The announcement noted that “given the downgrade to the global outlook, economic activity in Canada is now projected to be a little weaker than previously forecast” and that “the risks associated with household imbalances, while evolving in a constructive way, are still elevated.” With these considerations, the Bank is maintaining its monetary policy stimulus, and is neutral with respect to the timing and direction of the next change.
Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. The next rate-setting day is September 3rd. Fixed rates on the other hand are based on the bond market.