BOC Maintains Overnight Rate

Bank of Canada Maintains Overnight Rate

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

The Bank of Canada maintained it’s target for the overnight rate this morning meaning no changes to variable mortgage rates.  The announcement states…

“the Bank was projecting a temporary slowdown in late 2018 and early 2019, mainly because of last year’s drop in oil prices. The Bank had forecast weak exports and investment in the energy sector and a decline in household spending in oil-producing provinces. However, the slowdown in the fourth quarter was sharper and more broadly based. Consumer spending and the housing market were soft, despite strong growth in employment and labour income. Both exports and business investment also fell short of expectations. After growing at a pace of 1.8 per cent in 2018, it now appears that the economy will be weaker in the first half of 2019 than the Bank projected in January.”

The Bank is closely watching household spending, oil markets, and global trade policy stating there is increased uncertainty about the timing of future rate increases.

You can read the full release here: BOC Announcement

The Bank has made no changes to rates in the last three announcements and the next scheduled announcement is April 24, 2019.

There are some very good discounts on variable rate mortgages at the moment and we are seeing rates decrease on fixed rates as lenders get ready for the typical competitive spring market.