Inflation Dips – Pressure to Raise Prime Rate Decreases!

Canada’s annual inflation rate dipped to 1.9% in March from 2.6% in February, largely due to slower year-over-year increases in prices for food and energy, Statistics Canada said on Friday.  The Bank of Canada uses interest rates to reach its target inflation rate of 2%.  With the current inflation rate coming in at below target, […]

Bank of Canada Maintains Prime , Hints at Future Increases

The Bank of Canada yesterday maintained it’s key overnight lending rate at 1%, holding the Prime rate on which Variable rate mortgages are based at 3%. In their press release, they listed several factors being considered in the decision…. “Overall, economic momentum in Canada is slightly firmer than the Bank had expected in January.” “…The […]

Mortgage Rate Expectations fading fast

Canadian Mortgage Rate Forecast (from Over the past few months, major economists have backpeddled on their rate hike predictions. Not long ago, the consensus of economists was projecting a July 19 increase. Now, those same analysts aren’t looking for a rate bump until this fall…or later. Here’s a chart from BMO illustrating how fast rate […]

Interest Rates to Rise Slowly….

Benjamin Tal is one of Canada’s most quoted domestic economists. In some recent comments,  Tal outlined why interest rates may take the slow road higher: Echoing words from the U.S. Federal Reserve, Tal said we’re in an “unusually uncertain market.” Canadian and U.S. central bankers would be the “first to admit” they don’t know what to […]

Bank of Canada maintains key overnight rate again

The Bank of Canada again maintained it key overnight rate at 1% yesterday citing the persistent strength of the Canadian dollar as the main reason for holding back rate increases despite stronger economic growth signals around the world. “For those hoping for discernable hints of hawkishness in the Bank of Canada’s policy statement, those hopes […]