January 24, 2014
The Bank of Canada Rate Decision
The Bank of Canada left the Prime lending rate the same, once again, at 1%. It has now become more dovish and said there is just as much of a chance of a rate cut as a rate increase. This is good for us borrowers, especially those in variable rate mortgages or people thinking of taking a variable rate term. They also stated that it will most likely be 2 years before they start increasing the Prime Lending Rate.
The reason for their decision is low inflation and even a small chance of deflation.
Here's an article from Canadian Mortgage Trends recapping their decision: