The Bank of Canada announced on April 13 2016 that they would be leaving the overnight lending rate at 0.5%
This means that consumer lending rates should remain the same.
The bank prime rate that banks charge to the consumer remains at 2.70%
Read more about definition of rates
Read more about definition of rates
Below is, in part, what the Bank of Canada Announced on Wednesday April 13 2016:
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Growth in the global economy is expected to strengthen gradually from about 3 per cent in 2016 to 3 1/2 per cent in 2017-18, a weaker outlook than the Bank had projected in its January Monetary Policy Report (MPR). After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies.
Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the United States, as well as recent increases in commodity prices.
The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon. First-quarter GDP growth appears to have been unexpectedly strong, but some of that strength is due to temporary factors and is likely to reverse in the second quarter. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative. Non-resource exports are expected to strengthen, but their profile is weaker than previously projected, in part because of slower foreign demand growth and the higher Canadian dollar. The economy continues to create net new employment, especially in services, despite job losses in resource-intensive regions. In this context, household spending continues to expand moderately. While business investment is still shrinking due to sizeable declines in the energy sector, it is expected to turn positive later this year. The complex adjustment figures importantly in the Bank’s annual review of the economy’s potential, which has resulted in a lower estimated range for potential output growth.
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
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mark@mississauga4sale.com
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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Hmmm... Let's compare it with the price trend in Canada property market. Prices in Vancouver gained 11% on average. Sales of existing property increased by 28% to a new record high (over 43,000 transactions), the strongest gains anywhere in Canada last year. By February this year, properties in Toronto were still selling like hot breads, up 20.2% on the same period in 2015, even though new mortgage insurance rules raised the minimum down payment on property worth $500,000–999,000. The Canada Mortgage and Housing Corporation has voiced fears some local housing like Vancouver and Toronto have been overvalued and are presenting signs of a bubble that will only recede if prices stabilise. The good news is that price growth is due to slow down to a sustainable rate in 2016 according to https://tranio.com/canada/analytics/2016_outlook_residential_real_estate_market_in_canada_5105/
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