The Bank of Canada maintained it’s target for the overnight rate this morning meaning no changes to variable mortgage rates.
Today’s announcement states…
“Ongoing uncertainty related to trade conflicts has undermined business sentiment and activity, contributing to a synchronous slowdown across many countries. In response, many central banks have signalled a slower pace of monetary policy normalization. Financial conditions and market sentiment have improved as a result, pushing up prices for oil and other commodities.”
“In Canada, growth during the first half of 2019 is now expected to be slower than was anticipated in January. Last year’s oil price decline and ongoing transportation constraints have curbed investment and exports in the energy sector. Investment and exports outside the energy sector, meanwhile, have been negatively affected by trade policy uncertainty and the global slowdown. Weaker-than-anticipated housing and consumption also contributed to slower growth.”
“The Bank expects growth to pick up, starting in the second quarter of this year. Housing activity is expected to stabilize given continued population gains, the fading effects of past housing policy changes, and improved global financial conditions”
The Bank echo’s that they are 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 general consensus among economists is that interest rates will remain the same or even drop in the foreseeable future. The Bank has made no changes to rates in the last three announcements and the next scheduled announcement is May 29, 2019.
Fixed mortgage rates have had a downward trend the last few weeks and some lenders are offering some of the best variable rate discounts historically available.