This month on its scheduled announcement date (March 6th) the Bank of Canada (BoC) again decided to leave its key overnight lending rate alone. It has been two and a half years since it has adjusted the rate that directly impacts the Prime Rate of interest,
On March 20th the Board of Governors of the US Federal Reserve decided to again leave their key rate unchanged, giving continued stability and consistency to their declared strategy. Furthermore they said: "In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent…" With the US unemployment rate currently at 7.7% theUS bank rate will remain low for an indefinite period, likely doing the same to Canada’s key rate.
North America's superior central bank mechanisms are proving beneficial for navigating through the financial & economic crisis of the past five years. The economic hangover that persists in Europe and other world economies proves this to be true, especially in light of the fact that the crisis originated from the US.
Buzz Grant, Mortgage Logic