Agent Blogs
Bank of Canada Announcement for October 25th
The Bank of Canada met today and saw no reason to move its key lending rate from 1.00%, where it has been for a little over a year.
That's precisely what the market anticipated and it means prime rate (which is the basis for variable mortgage rates) should remain at 3.00%.
The Bank of Canada’s decision comes amid ongoing economic danger in Europe, sputtering U.S. growth and surprising inflation here at home (core inflation hit a three-year high in September).
Highlights of the report are summarized below.
- Increased volatility in the financial markets.
- Major concerns over the Euro financial scene.
- Weak real GDP growth in the U.S. through the first half of 2012.
- Slower growth in China and emerging market economies.
- Weaker outlook for the Canadian Economy, through mid 2012 and then picking up as the global economic environment improves.
- Core inflation is expected to be slightly softer than previously expected.
Overall forecast is based on several significant upside and downside risks. There are no changes expected in the prime rate for the foreseeable future.
The next Bank of Canada Announcement is scheduled for December 6, 2011
If you have any questions or if you would like current mortgage rates held for you please email me at cory@ndlc.ca. Thank you!
-Cory
