Bank Of Canada holds interest rates steady
May 4th, 2015
Canada’s central bank announced in mid-April that it is maintaining its target for the overnight rate at ¾ percent and the Bank Rate at 1 per cent. Total Consumer Price Index inflation is at 1 per cent, reflecting the drop in energy prices, while the core inflation rate ( which does not include energy prices*) has remained close to 2 per cent.
The Canadian economy appears to have stalled in the 1st quarter of this year due to oil price shock, but the central bank believes that real GDP growth will rebound in the second quarter. The Bank experts real GDP growth in Canada to be 1.9 per cent in 2015. 2.5 per cent in 2016 and 2.0 percent in 2017.
The BOTTOM LINE is that mortgage rates will probably remain stable this year and since rates are at an all-time low, our real estate market is likely to “zane” along to a strong year.
