The Bank of Canada’s most recent rate announcement came as little surprise to anyone – they’re keeping their trend-setting overnight lending rate at 1 per cent, where it’s been for four years. This is the longest that the rate has ever remained unchanged.
However, are they likely to raise their rate any time soon? The Canadian Real Estate Association says no, and they’ve got a list of reasons why.
“One notable change in language in the September 3rd announcement was the removal of any references to a soft landing in the housing market,” said the Canadian Real Estate Association. “This Bank said that the housing market has in fact remained stronger than previously anticipated and that risks associated with household imbalances have ‘not diminished’. That said, it is possible that stronger U.S. growth, a surge in exports, and the current strength of the housing market could all reflect a rebound from weak performances this past winter, which was unusually harsh.”
Check out the Canadian Real Estate Association’s list here: http://www.crea.ca/reasons-why-bank-canada-will-keep-interest-rates-low