Industry News

While the Bank of Canada acknowledges the economic outlook here and elsewhere “is slightly weaker” than thought, policymakers are also offering up some hope for the near future.

In a nutshell, Canada’s economy is growing at a slower pace than expected – although a pickup is likely later this year – and inflation remains weak at near recession levels, for now, while consumer debt and the housing market appear to be stabilizing, if not cooling. At the same time, the global outlook has also slowed, while fiscal and debt concerns in the United States and Europe have dissipated slightly.

The bottom line for Canada: Interest rates aren’t going anywhere soon.

Today, for the first time, policymakers combined their regular-rate decision announcement with the bank’s Monetary Policy Report, a closely-watched quarterly reading on domestic and global factors affecting the economy.

As expected, the Bank of Canada kept a lid on borrowing costs, with its trendsetting overnight rate – the main instrument used to guide inflation toward the bank’s 2% target – remaining at a near-record low 1%, unchanged since September 2010 and now the longest dormant stretch since the early 1950s.

The only wrinkle in its usually pact statement accompanying a rate announcement was to highlight “the more muted inflation outlook and the beginning of a more constructive evolution of imbalances in the household sector,” adding that “the timing of any such withdrawal is less imminent than previously anticipated.”

Click here to read more from the Financial Post.

If you require guidance on current market trends, please call us, we are always available to help.

Today 5 year mortgage money is in the 2.98% range and 10 year money from 3.79%. Variable rates are as low as 2.65%.

Thank you,

–Cory Kline (Cory @NDLC.CA or 705-794-1283)

Mortgage Planning since 1998