Good news for variable clients and those with lines of credit.
Bank of Canada maintains overnight rate!
Despite global economic uncertainty fuelled by the situation in China, the Bank of Canada is opting to maintain it’s target for the overnight rate at 0.5% this month-although some economists believe another rate cut may still be in the cards later this year.
With total CPI inflation within the target range (albeit near the bottom), and core inflation close to 2%, the Bank believes the current stance on monetary policy is appropriate to keep it in check. And while Canada’s resource sector is still adjusting to lower oil and commodity prices, spillover to the rest of the economy is minimal with household spending and a solid US recovery picking up the slack.
Many believe the Bank’s rate announcement was positive, overall, and while another rate cut this year was highly possible just a few short weeks ago, it’s by no means a certainty. But then again, when is a rate change ever a sure thing? As always, only time will tell. In the meantime, keep paying a little extra on your variable rate mortgage-and tune in on October 21 to find out the Bank’s next rate decision.