Bank of Canada Maintains Overnight Rate Target at 1%                             

The Bank of Canada maintained its target rate. It is worth reading the final paragraph(below) as it mentions possible withdrawal of “monetary policy stimulus”, meaning rate hikes are possible in the near future. “Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments”

Click link for the full article: http://www.bankofcanada.ca/2012/04/press-releases/fad-press-release-2012-04-17/

The next Bank of Canada Announcement is scheduled for June 5, 2012.

Bank prime is 3.00%

-Cory
P.S. If you have any questions as to what this means to your mortgage, we are always here to help you with unbiased advice.