On Wednesday the Bank of Canada meets again to discuss what the monetary policy will be for the next few months. During this meeting, the overnight lending rate is also set. The last meeting kept the rate unchanged at 1%, with signs that it would be going up shorty to cool off a hot real estate market and rising consumer debt.
Over the past few days weak economic numbers and a 0.1% GDP decrease in the second quarter have lead economists to predict rates will remain the same. I agree, especially since uncertainty in Europe, poor US job report, hurricane Irene, and Japanesse earthquake recovery have contributed to overall world economic troubles. This is great news for anyone who has a variable interest rate on their mortgage, line of credit, or student loan. While major banks like RBC and TD have raised their variable rates, not all lenders have followed. Great variable rates are still available, for more information give me a call at 416 909 5044.