At 10:00 am EST today, January 20th the Bank of Canada somewhat surprised us with what they did… they maintained their overnight rate. What this means is that the prime rate on a mortgage or line of credit will not change and remains at 2.70%.
Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision:
“Prices for oil and other commodities have declined further and this represents a setback for the Canadian economy.
(Overall) growth was stalled in the end of 2015, pulled down by temporary softness in the U.S. economy, weaker business investment and several other temporary factors.”
"The Bank now expects the economy’s return to above-potential growth to be delayed until the second quarter of 2016."
They did not that despite job-loss in the resource sector, we have begun a re-orientation away from our reliance on this sector and on a positive note, house hold spending has NOT declined.
The Bank also projects Canada’s economy will grow by about 1 1/2 per cent in 2016 and 2 1/2 per cent in 2017.
Have more questions about this or wondering how this affects you? Give me a call 604-619-3319 or shoot me an e-mail