The Bank of Canada has announced that its overnight lending rate will remain at 1 per cent, where it has been since September of 2010.
The advertised five-year lending rate is still 5.34 as of January 22nd, the same as it was the last time the Bank made an announcement in early December.
The Bank’s next scheduled rate announcement will be in early March, 2014.
According to the Canadian Real Estate Association, “Since the Bank’s last announcement in early December, inflation in Canada has moved even further below the Bank’s 2 per cent target. Moreover, the Bank indicated it is now expected to remain lower for event longer and not return to target for ‘about two years’.”
CREA continued, “Given the currently high level of household indebtedness and low inflation, the Bank still sees current interest rates as being at appropriate levels. Its next decision will hinge on economic trends over the next few months, particularly for inflation.”