Bank of Canada hold rates for the 10th time rate drop looming March 2020

10th Rate Hold … Are Mortgage Rates Going To Fall in March?

In Bank of Canada, Interest Rate Trends by Vancouver Mortgage Broker

For the 10th time in a row the Bank of Canada held interest rates today … but the tone of the announcement has some experts calling for an interest rate drop in March.

The GOOD that was noted:
– The global economy is showing signs of stabilization
– Residential investment robust through most of 2019 solid through to the 4th quarter
– Canadians have been saving a larger share of their incomes
– Labour markets in most regions have “little slack” and wages continue to firm

The NOT SO GOOD that was noted:
– High degree of global uncertaintly
– Geopolitical tensions have re-emerged
– Canadian economic indicators are mixed (meaning instability) and near term economic growth will be weaker
– Exports fell in late 2019
– Business investment has softened
– Job creation has slowed
– Canadian consumers are saving … means they are spending less in the economy
– Global economic conditions could be affecting the Canadian economy more than predicted

“In assessing incoming data, the Bank will be paying particular attention to developments in consumer spending, the housing market, and business investment.”  And you can bet they’ll be watching the affects the global economic environment is having on Canada.

For now rates are the same (and there is no change to mortgages with variable rates), however the government may be forced to reduce rates at their next meeting March 4, 2020 by 0.25%.