Tuesday, June 5, 2012

Once Again No Change To The Bank of Canada's Key Rate

Bank of Canada

Once Again No Change To The Bank of Canada's Key Rate

The Bank of Canada announced earlier today that it is keeping its key policy rate unchanged, although still noting that future rate hikes may be necessary – "some modest withdrawal of the present considerable monetary policy stimulus may become appropriate." The key rate is now unchanged since September 2010. The prime rate for most lenders should stay at 3%, which means no changes for variable rate mortgage holders.

The Bank's statement noted that the outlook for global economic growth has weakened, saying "some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions."

The Bank's next rate decision is scheduled for July 17.

The great Canadian mortgage sale continues this spring market, with historically low 5 and 10-year fixed rates that are unrelated to the key policy rate. Take advantage!

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