Borrowing rates are garnering a lot of attention right now because there’s much uncertainty about everything from the housing market to what direction the Canadian economy is headed in. Big banks have begun lower mortgage rates againas sales activity has slowed and competition for fewer borrowers has picked up.
The Bank of Canada meanwhile is maintaining its trend-setting benchmark interest rate at 1.0 per cent. That rate is what influences lending rates among the banks and there has been speculation that the BoC could actually cut rates in a bid to juice a sluggish economy. But with Canadian households already highly indebted, officials are hesitant to create more borrowing room.