Once again, no rate change

If you’ve got a variable-rate mortgage, need a new mortgage, or want to consolidate debt at the lowest cost funds, it’s great news that we are finishing 2014 with the Bank of Canada keeping the overnight rate unchanged. The prime rate stays at 3%.

 

The overnight rate has held steady for more than four years. In its interest-rate announcement, the central bank noted that the rate is “appropriate” given the “balance of risks” in the economy.

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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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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.