Calgary Mortgage Tips

The Bank of Canada holds the rate at 0.25%

The Bank of Canada announced today that it will hold its rate at 0.25%. Banks therefore are expected to keep their prime rates at 2.25%.

The Bank of Canada said that the Global economic growth has been somewhat stronger than they projected. Despite recent progress, considerable uncertainty remains about the durability of the global recovery.

The Bank of Canada said economic activity in Canada will continue to be dragged down by the persistent strength of the Canadian dollar, Canada’s poor relative productivity performance, and the low absolute level of U.S. demand.

The Bank of Canada has softened on their stance that they will hold the current rate until the end of the second quarter 2010. They said “with recent improvements in the economic outlook, the need for such extraordinary policy is now passing”. It is generally accepted that the two options were to hold until July and raise rates by a half percent or raise by a quarter percent one announcement early and another quarter in July.

We are continuing to recommend that clients stay in their variable rate mortgages. The date of the Bank of Canada’s next announcement is scheduled for June 1, 2010.

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April 20, 2010 Posted by jackiefrost | economic recovery, mortgage rates | Bank of Canada lending rates, economic recover in Canada, mortgage rates | Leave a Comment