On May 25th, the Bank of Canada announced its trend-setting overnight lending rate would remain at 0.5 per cent. The advertised five-year lending rate is 4.64 per cent, which is the same as one year ago.
According to the Canadian Real Estate Association in a press release, “The Bank indicated it expects that recent wildfires in Alberta will cause the Canadian economy to shrink slightly in the second quarter and then rebound in the third as oil resumes production and reconstruction begins in affected communities. With inflation largely in line with the Bank’s expectations and the economy continuing its uneven adjustment the Bank of Canada is likely to keep interest rates on hold well into 2017.”
The next scheduled Bank of Canada interest rate announcement will be on July 13.