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, exactly where it's been since September 2010, which means no changes for variable rate mortgage holders. The longest recorded rate pause continues – 12 consecutive meetings. As a result, the prime rate for most lenders should stay at 3%.
The Bank's statement was slightly more optimistic than in recent announcements, saying "the heightened uncertainty around the global economic outlook has decreased" although they note that "the global economy is still expected to grow below its trend rate." With respect to the U.S and Canada, they state that "the U.S. expansion is proceeding at a modest pace" and "that the outlook for the Canadian economy is marginally improved." Canadian debt levels continue to be an ongoing concern as "spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk."
The Bank's next rate decision is scheduled for April 17.
We're heading into the spring market with historically low 5 and 10-year fixed rates, which are unrelated to the key policy rate. The great Canadian mortgage sale continues.