Bank of Canada Rate Announcement - January 18, 2011

For the 3rd straight time since last October, the Bank of Canada again announced that it is leaving its target overnight interest rate at 1%, but hinted that increases are on the way. While global economic instability continues, the bank indicated in its media statement that the pace of recovery is moving faster than anticipated.

Following this news, chartered banks and other financial institutions are expected to leave their prime lending rate at 3%.

The timing of Flaherty’s announcement fuels speculation that interest rate hikes are imminent. For Canadians managing oppressive debt loads, even an incremental rise in rates could be costly.

The time is now to get a handle on your debt, while rates are favourable.

Next Bank of Canada rate announcement – March 01, 2011.

Click here for the full Bank of Canada report.

If you are in a variable rate mortgage and need mortgage advice or if you have any friends or family that are buying a home or refinancing their existing mortgage, please call us so we can connect up with them. We always appreciate your referrals.