Interest rates between banks were unchanged by the Bank of Canada at 0.5%. What does this likely mean?
- Lending between banks will stay stable resulting in the continuance of low Mortgage rates
- Interest earned in savings, chequing, e-savings, etc.. accounts will stay relatively stable
- The loonie will likely not strengthen in comparison to the US Dollar in the immediate future
Future housing prices increases or decreases are unpredictable due to several global factors which have an impact. A cut in the Bank of Canada rate will influence prices.
The Bank of Canada will make a further evaluation on adjusting the interest rate before the end of the year.