No change in the Bank of Canada rate today. This was largely expected.
They spoke of the following changes in their previous projections.
"Increase in the European sovereign debt crisis".
"The U.S. recession was deeper and recovery shallower than previously reported"
"Canadian economic growth stalled in the second quarter".
"The Bank expects the total CPI inflation to continue to moderate".
Of most importance they say "in light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished".
In summary, no upward changes expected for now in the prime rate. I would not be surprised to see a rate drop if the global situation does not change.
At this point variable rate mortgages remain an extremely attractive option for those with the toleration for risk. We would strongly recommend that you read the full report from the bank of Canada.
The next Bank of Canada Announcement is scheduled for October 25, 2011.
Bank prime remains at 3.00%.
P.S. If you have any questions as to what this means to your mortgage, we are always here to help you with unbiased advice.
To read the full announcement go to... http://www.bankofcanada.ca/2011/09/press-releases/fad-press-release-2011-09-07/