Bank of Canada maintains overnight rate
Bank of Canada announced this morning that they will keep the overnight rate steady at 1%. The overnight rate is what the major banks use to benchmark the Prime rate mortgages, which is currently at 3%.
The bank did hint, however, that it may resume rate hikes sooner than expected.
For anyone in a variable rate mortgage it means that your interest rate will remain constant for the coming months as the Bank of Canada did not give any indications of increasing the Prime rate.
Next Meeting: July 17
Prime Rate: 3.00%
To learn more about the dynamics behind this decision, check out the articles below.
Bank of Canada holds rates steady
Globe and Mail - Jeremy Torobin
The Bank of Canada left its main interest rate untouched at 1 per cent Tuesday and again suggested that it will tighten borrowing costs when economic conditions allow such a move, while hinting this is farther off than policy makers were anticipating just six weeks ago.
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Paramjeet Nagi, Broker