The Bank of Canada has left the overnight rate the same at today’s meeting which leaves the prime rate unchanged at 3%.
There is no change imminent. The rate has been unchanged now for 2 years making variable rate mortgage holders very happy.
In it’s statement today, the Bank said:
-” global headwinds continue to restrain economic activity”
-” economic growth is expected to pick up through 2013″
– ” core inflation is expected to return, along with CPI inflation to 2% over the next 12 months”
– “to the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawl of monetary policy stimulus may become appropriate”.
When it will become “appropriate” is anyone’s guess.
For what it’s worth, Bay St is forecasting the next increase to be mid to late 2013. That date has been continually pushed back since Sept 2010.
The next Bank of Canada meeting is Oct 23/12.
Please call us if you would like to discuss your mortgage options. We are here to help.
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