As you may have heard over the news, on Wednesday, March 6th, 2019, the Bank of Canada has announced that they will NOT be increasing the key overnight interest rate for the third time this year. At the same time, Stephen Poloz, the Governor of the Bank of Canada, has also hinted that he does not foresee any more rate hikes in the coming months, and this may be pushed until 2020!
The Canadian economy has taken a turndown, as Quarter 4 2018 GDP dropped to an annualized rate of 0.4%, which is less than half of what the Bank of Canada predicted earlier this year. With exports and investments down, along with a cooling housing market, no wonder there is no forecast for a rate hike in the upcoming months!
If you are in a variable rate mortgage, there's no reason to sweat! The strong discount on your variable rate is saving your more interest in the long term!
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