Canada's Key Interest Rate Holds Steady
September 5, 2019 | Posted by: Tania Campfield
Key Interest Rate Holds Steady
While persistent trade tensions are affecting global economic momentum, the Bank of Canada announced today that it is keeping its benchmark rate unchanged. While growth in Canada has been strong, the Bank expects this to be temporary with economic activity expected to slow in the remainder of the year. The Bank believes the current accommodative interest rate policy to be appropriate, although they will be closely watching how the ongoing trade conflicts will impact Canadian growth and inflation.
The Bank also noted that housing activity has regained strength, supported by demand and lower interest rates. While this may add to already high debt levels, they believe current mortgage rules will help contain the risk associated with higher household debt.
The next rate-setting day is Wednesday, October 30th.
Be sure to get in touch if you have questions about your mortgage plan. This may be a good time to switch your variable mortgage to fixed rate or, if your current rate is 3.19 or higher, you may want to look at whether it makes sense to refinance your mortgage to take advantage of today's much lower fixed rates. Good advice and a personal assessment of your situation will save you time, money, and stress!