The Bank of Canada 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 Canadian economy is now expected to return to full capacity by the end of 2013 (it was previously mid-2012). Core inflation is expected to be declining through 2012.
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 Canadian economy is now expected to return to full capacity by the end of 2013 (it was previously mid-2012). Core inflation is expected to be declining through 2012.
The bank left out language about potential rate hikes or cuts, but slashed its 2012 Canadian growth forecast from 2.6% to 1.9%.
With a commitment from the U.S. Fed to keep its policy rates “exceptionally low” until mid-2013, there is little expectation that the BOC will diverge and raise rates substantially before then.
The bank also hinted that if the euro-area crisis is not contained, that could be a reason to lower rates here.
According to the current Big 6 bank consensus forecast, 2012 should see a 50 bps increase in prime rate. Financial markets don't believe that, however, with derivatives traders effectively pricing in no change by the Bank of Canada in the next year.
The final BoC rate meeting for 2012 is December 6.
To find out more about Toronto mortgage rates and lowest mortgage in Ontario go here - http://www.torontogreathomes.com/ONTARIO_MORTGAGE/page_929364.html
With a commitment from the U.S. Fed to keep its policy rates “exceptionally low” until mid-2013, there is little expectation that the BOC will diverge and raise rates substantially before then.
The bank also hinted that if the euro-area crisis is not contained, that could be a reason to lower rates here.
According to the current Big 6 bank consensus forecast, 2012 should see a 50 bps increase in prime rate. Financial markets don't believe that, however, with derivatives traders effectively pricing in no change by the Bank of Canada in the next year.
The final BoC rate meeting for 2012 is December 6.
To find out more about Toronto mortgage rates and lowest mortgage in Ontario go here - http://www.torontogreathomes.com/ONTARIO_MORTGAGE/page_929364.html
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