Tuesday, December 08, 2009

Bank of Canada announcement to keep prime rate at .25%

Today the Bank of Canada announced that they will keep interest rates at 0.25% as expected. This means that the Bank of Canada prime rate will remain at an all time low and that the bank prime will remain unchanged at 2.25%

The bank expects to keep it's prime at .25% until the middle of 2010

This will should keep our real estate market humming along at it's current pace.

All the best,

Bank of Canada Holds Key Rate Steady

As expected by most economists, the Bank of Canada announced this morning that it will leave its key interest rate unchanged at its all-time low. The Bank also reiterated its commitment to hold its key rate at the current level until the end of the second quarter of 2010, conditional on the outlook for inflation. In its statement the Bank noted that “While significant fragilities remain, global economic developments have been slightly more positive and the global outlook has improved modestly.”

Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate.

Pricing for fixed-rate mortgages is not directly affected by today’s announcement.

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