The Bank of Canada held it’s key lending rate at 0.25% today as most analysts expected.
Surprisingly though, they maintained that their outlook that was provided in October was still on target. This despite some recent economic indicators that were not as strong as original forecast nor hoped for.
They reiterated their conditional commitment to maintain rates at current levels until the second quarter of 2010. This is good news for all variable rate mortgage holders. Personally, I think that the rates will not rise of any significance even in latter 2010 unless the economy improves dramatically. Inflation does not seem to be a factor at all at this time.
You can read the entire Bank of Canada press release here.
Your thoughts and comments are welcome as always.
