No surprise that the Bank of Canada today announced that it will be holding its trendsetting rate at 1%. The last increase was September 2010, when the rate was increased by 0.25%.
Most people were expecting this, given the slow economic expansion in the US, the European recession and debt woes, and China slipping from its record high growth rates. Despite all this, Canada’s economy is still trucking along according to the Bank of Canada, with economic growth expected to increase through 2013.
Given this announcement and with 5-year fixed mortgage rates now sitting at just 3.09%, I expect the fall real estate market to have continued momentum.
The next scheduled announcement by the Bank of Canada will be October 23, 2012. You can get more information and read the entire press release on the Bank of Canada’s website.