The Bank of Canada maintained it’s overnight target rate at 0.25 %. Variable rate mortgage & line of credit holders interest rates remain the same. Prime rate is currently at 2.45% for most Canadian lenders.
The Bank is also maintaining it’s quantitative easing program at $4 billion per week which is keeping fixed mortgage rates low.
The BOC states:
“The economic recovery has been interrupted in many countries as new waves of COVID-19 infections force governments to re-impose containment measures. However, the arrival of effective vaccines combined with further fiscal and monetary policy support have boosted the medium-term outlook for growth.”
“In view of the weakness of near-term growth and the protracted nature of the recovery, the Canadian economy will continue to require extraordinary monetary policy support. The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our projection, this does not happen until into 2023.”
FOR THE FULL BANK OF CANADA ANNOUNCEMENT CLICK HERE: BANK OF CANADA PRESS RELEASE