Bank of Canada Leaves its Key Rate Alone and Bond Rates Seemed to Have Peaked
On March 1st the Bank of Canada (BoC) decided to leave their key overnight lending rate alone, thus influencing the Prime interest rate the same. It does not seem likely that the BoC will raise rates anytime soon especially given the strength of the Canadian dollar. In the matter of global economic recovery - it is difficult to imagine this occurring in a quick fashion given that the U.S. had a $2 trillion deficit last year and has a $44 trillion negative net worth or $14,000 of debt for every person in the U.S. It seems as though Bond rates are settling downwards right now also, which is a tell tale sign for the behaviour of fixed mortgage rates.