On Tuesday the Bank of Canada governor, Mark Carney, did what economists predicted he would do-nothing. He held the Bank of Canada's key interest rate at 1%. This is quite the change from the previous 3 sessions this year where the Bank raised the rate by a quarter of a point each time. Why the sudden change in policy? "a sluggish recovery south of the border and softer-than-expected Canadian growth in the second half of 2010 have pulled the Bank of Canada onto the sidelines," says BMO Capital Markets economist Robert Kavcic, "We judge they will remain on hold until May 2011." What does this mean for Real Estate in Canada. It's all good! With interest rates remaining low, buyers will continue to jump into the market and sellers will get their properties sold! This stands to boost the Real Estate market through next spring and help shake off the doldrums produced by the HST. It will also be a very good time to purchase investment properties over the next few months giving you a chance to capitlaize on the tax advantage that produces. So thank you Mr. Carney!
Bank of Canada Holds Interest Rate at 1%
- October 20, 2010
CENTURY 21 Dreams Inc., Brokerage*