The Bank of Canada announced yesterday that it is holding the benchmark interest rate unchanged at 0.5% with an optimistic outlook, noting that "federal and provincial measures are still expected to support growth in 2017" and predicting "a return to full capacity around mid-2018" as earlier projected in October.
The Central Bank predicts for 2017 that it expects oil prices and the Canadian dollar to stay close to the $50 US for a barrel of crude (currently around $52.48 US per barrel at January 17th), and 75 cents US for the Canadian dollar (currently at 77 cents US at January 17th). Low interest rates help keep the Canadian dollar low which in turn aids our export market, however global demand for our products has stalled. The European Union members' debt crisis, global oil-price collapse, and Brexit have undermined markets and consumer confidence. In addition, the uncertainty over our trade position with the U.S. as a result of the U.S. election is expected to delay capital spending and business investment in Canada.
We expect to see interest rates staying low in Canada well into 2020. The Bank of Canada believes it must continue its monetary policy of ultra-low rates to control inflation, stimulate other sectors of the economy besides housing and spur our Canadian export market.
The new mortgage rules have caused mortgage rates to be very complicated, and it's not as easy as it used to be to get a quick rate quote. That's why you want to work with an experienced mortgage broker who has access to a wide range of lenders and knows the right questions to ask to assess your situation and provide the best mortgage and rate for your needs. Save yourself time and stress; don't just ask what the rate is, have a conversation instead. Get in touch today if you are planning a purchase, have a mortgage renewal, or want to use today's low rates for renovations or to refinance and save thousands by moving your high interest debt to your low-rate mortgage.
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.
Rates are subject to change without notice. OAC E&OE
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