As expected, the Bank of Canada announced yesterday that it is not changing the benchmark rate.
The announcement noted that with “inflation expected to be well below target for some time, the downside risks to inflation remain important.”
Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3% and it’s unlikely we’ll see any increases in the near future.
The next rate-setting day is April 16. Eight times a year, the Bank of Canada sets the rate that governs each lender’s prime rate. Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates on the other hand are based on the bond market.