Mark Carney and Bank of Canada (BoC) has once again elected to leave the key interest rate untouched. The central bank has kept this rate, at 1.00 per cent since September of 2010.
The central bank announced the Canadian economy continues to expand, but that housing activity is starting to decline and exports remain weak. Ultra-low mortgage interest rates artificially inflate long-term affordability and incentivize consumers to borrow money. Unfortunately, Canadians have been taking on household debt to a record 163 per cent debt-to-income ratio. This has caused the Bank of Canada governor to label it as the greatest domestic threat to the economy.
Still, the bank said growth will average 2.2 per cent this year, one-tenth more than it had projected in July.
The next BoC rate meeting is December 4, 2012.
NOTE: while my official website shows a 5 year fixed rate of 3.04%, my brokerage has been able to negotiate a rate of 2.94% O.A. C.
Contact me for up to the minute rates.