Bank of Canada keeps rates low. Again.

by | Mar 9, 2016 | Interest rates, Mortgages

Reading Time: < 1 minute

The Bank of Canada announced today, unsurprisingly, that it was keeping its overnight rate target at 0.5%.
The bank considers that inflationary risk is “roughly balanced” and “financial vulnerabilities continue to edge higher” as the Canadian economy continues to restructure itself amongst low but rising oil prices and an appreciating loonie.

Financial market volatility, reflecting heightened concerns about economic momentum, appears to be abating. Although downside risks remain, the Bank still expects global growth to strengthen this year and next. Recent data indicate that the U.S. expansion remains broadly on track. At the same time, the low level of oil prices will continue to dampen growth in Canada and other energy-producing countries.

The next overnight rate target will be announced on 13 April 2016, which should take into account spending initiatives announced later this month when the federal government releases its first full budget since taking office.
So what does this mean for homeowners? It means that it’s still a great time to own a home. Low interest rates mean you end up paying less in interest over your term, and it lowers your overall monthly payments.
Contact us today to see how you can take advantage of low interest rates.