Market update – February 5th, 2013

For the 17th straight time, the Bank of Canada has kept rates steady!

The Bank of Canada is once again keeping its key policy rate unchanged, and surprisingly indicating that future rate hikes are less imminent than previously anticipated. The Bank’s statement noted that in Canada “the slowdown in the second half of 2012 was more pronounced than the Bank had anticipated,” that “caution about high debt levels has begun to restrain household spending,” and that “core inflation has softened more than the Bank had expected.”

The prime rate for most lenders should stay at 3% so you can continue to enjoy your low rates for a little while longer!