Canada’s key interest rate will begin 2012 exactly where it’s been since September 2010 unchanged at 1.00%.It’s the longest stretch on record without a Bank of Canada rate change.
Economists didn’t expect the BOC to move rates at this meeting. Instead, they were looking for any change of language in the Bank’s official statement. As usual, there were a handful of conspicuous statements in that release. The Boc said:
Analysts reading between the lines say the Bank’s statements imply low odds of further rate cuts anytime soon.
From a mortgage standpoint, the immediate result of all this is that prime rate should remain at 3.00%. That means payments stay the same for existing variable-rate mortgage holders.