Tag Archives: interest rates

Bank of Canada Keeps Interest Rates Steady

On July 13th, the Bank of Canada announced it would maintain its target overnight lending rate at 0.5%. On this same day, the advertised five-year lending rate was 4.74%, which is 0.1% higher than the last rate announcement.

According to the Canadian Real Estate Association, “The announcement repeated many of the themes from its announcements and Monetary Policy Reports published in late 2015 and early 2016. Chief among these themes is how the Bank is still counting on the continuation of low interest rates and stronger U.S. economic growth to buoy Canadian exporters amid ongoing weakness in Canadian business investment. However, the Bank again reduced its annual forecast for Canadian economic growth in light [of] ‘a weaker outlook for business investment and a lower profile for exports reflecting a downward adjustment to US investment spending.’ It also recognized how recent economic growth was reduced by the Alberta wildfires; however, it expects Canadian economic growth will pick up in the third quart as oil production resumes.”

The next rate announcement from the Bank of Canada is scheduled for September 7th.

Advertisements

Bank of Canada Keeps Interest Rates The Same

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.

Bank of Canada Keeps Rates On Hold

On December 2nd, the Bank of Canada announced that it would hold its overnight lending rate at 0.5 per cent.

“Helped by interest rate cuts earlier this year, the Canadian economy rebounded in the third quarter of 2015 from two previous consecutive quarters of negative economic growth,” said the Canadian Real Estate Association in a press release. “However, the Bank expects ‘[economic] growth to moderate in the fourth quarter of 2015 before moving to a rate of potential in 2016.”

The next rate announcement is scheduled for January 20, 2016. For the complete report, see the full statement from the Canadian Real Estate Association here.

Bank Of Canada Keeps Interest Rate The Same

On September 9, the Bank of Canada announced that it would be keeping its overnight lending rate at 0.5 per cent.

“Little has changed since the Bank’s previous announcement and revised economic forecast published in July. Its September announcement serves as a placeholder as the Bank awaits more economic date prior to the release in October of its Monetary Policy Report, which will be published two days after the federal election,” said the Canadian Real Estate Association in a press release.

The next rate announcement from the Bank of Canada is expected on October 21.

Bank of Canada Announces Rate Cut

On July 15th, the Bank of Canada announced that it would lower its target overnight lending rate to 0.50 per cent from 0.75 per cent.

According to the Bank, it’s estimate of growth in Canada for this year has come down considerably from projections in April, but growth is expected to resume in the third quarter of 2015.

“Outside the energy-producing regions, consumer confidence remains high and labour markets continue to improve,” said the Bank. “This will support consumption, which will also receive a fiscal boost.”

The Canadian Real Estate Association said in a press release, “Recall that when the Bank of Canada previously cut interest rates by a quarter of a percentage point in January, Canada’s largest private banks lowered their lending rates by less than that. The same will likely hold true this time around. Accordingly, the Bank of Canada’s most recent interest rate cut is unlikely to cause consumer borrowing and mortgage lending to catch fire, especially given the currently high level of household debt.”

Bank of Canada Keeps Interest Rates The Same

The Bank of Canada announced in its most recent rate announcement that it is keeping its overnight lending rate at 0.75 per cent.

According to the Canadian Real Estate Association, in a recent press release, “The Bank thinks the economic fallout from low oil prices will be neatly limited to the first quarter. If it proves to be longer lasting, the Bank may downgrade its economic outlook again and further delay raising interest rates. Financial markets currently expect the Bank to start raising interest rates in the second half of 2016.”

In addition, “The Bank’s announcement ended by saying ‘a number of complex adjustments are under way’ and suggested ‘their net effect will need to be assessed as more data become available in the months ahead’. In the meantime, interest rates will remain supportive for Canadian home sales and prices.”

The next scheduled rate announcement is on July 15.

Bank Of Canada Changes Interest Rate For First Time In More Than Four Years

The Bank of Canada announced today that it would lower its overnight lending rate to 0.75 per cent from 1 per cent, which is the first time the Bank has changed its rate in over four years.

The advertised five-year lending rate is 4.79 per cent, which hasn’t changed since the last rate announcement on December 3, 2014, which is down by 0.45 per cent from December of last year.

In a press release, the Bank of Canada said, “The oil price shock is occurring against a backdrop of solid and more broadly-based growth in Canada in recent quarters. Outside the energy sector, we are beginning to see the anticipated sequence of increased foreign demand, stronger exports, improved business confidence and investment, and employment growth.”

According to the Canadian Real Estate Association, “The cut to the Bank’s interest rate will act as another shoulder against the wheel pushing Canada’s economy in this direction while helping put a floor under falling inflation. Even before the surprise rate cut, a rising spread between bond and mortgage rates was already putting downward pressure on five year fixed lending rate mortgages.”