Important Rate Annoucement
IMPORTANT RATE ANNOUNCEMENT:
Bank of Canada Holds Key Lending Rate Steady at 2.25%; July 21, 2009
The Bank also reiterated its commitment to hold its key rate at the current level until the end of the second quarter of 2010, conditional on the outlook for inflation. In its statement the Bank noted that in Canada, “simulative monetary and fiscal policies, improve financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring domestic demand growth. However, the higher Canadian dollar, as well as ongoing restructuring in key industrial sectors, is significantly moderating the peace of overall growth”.
Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity line s of credits are typically liked to a lenders’ prime rate.
Pricing for fixed-rate mortgages is not directly affected by today’s announcement.
