With the Bank of Canada’s rate announcement today, prime rate for mortgages will remain unchanged at 2.7%. Mortgage rates are still at an historic all time low as we head into the spring market.
Heading into today, economist were split 50/50 as to whether the bank would cut or stay put. Also note the Canadian dollar just jumped almost half a cent on this rate news (a sign that investors were worried about a rate cut, and priced it into the value of the currency.)
The Bank of Canada had already cut interest rates twice in 2015, in January and July. A key decision to maintain the already-low rate is that inflation has been unfolding as expected within its ideal target range.