The Bank of Canada announced today that—unlike their cut to interest rates 6 weeks ago—they’re keeping interest rates steady at 0.75%, signalling to lenders that it’s not quite time for more change yet.
The economy delivering on expectations was the reason the bank stuck to the current rate.
“Financial conditions in Canada have eased materially since January, in response to the Bank’s recent monetary policy action and to global financial developments,” the bank said in a statement. “The current degree of monetary policy stimulus is still appropriate.”
The bank’s rate impacts interest rates that Canadians get from commercial banks and other lenders when they borrow or save money. It also affects the dollar—the loonie strengthened 0.6 percentage points to 80.47 U.S. cents after the announcement—which could affect industry if the change lasts.
What does this mean for borrowers? Not much, other than you still get to enjoy record interest rates when you take out a mortgage.
The Bank of Canada is scheduled to meet again to set its benchmark interest rate on 15 April 2015. Until then, come talk to us about how we can help you take advantage of these low rates, save you thousands of dollars, and get you into the house you love.