The Bank of Canada made an announcement this morning, April 18th, 2018, that prime rate will stay at 1.25 per cent. This is the second time in a row that the Bank of Canada has not increased interest. The last BoC interest rate announcement was on March 7th, 2018.
The Bank blamed slow first quarter growth on the new mortgage rules which made it harder to qualify for a mortgage, along with the sudden downturn in home prices across the GTA.
The Bank had incorrectly predicted the economy to grow by 2.5 per cent in the first three months, but it only grew by 1.3 per cent. Unperturbed, they expect the economy will expand by 2.5 per cent in the next three months. You can read the BoC interest announcement here.
Those who have a variable rate mortgage can breathe a sigh of relief that their rates won’t increase for now.
The next scheduled interest rate announcement is May 30th, 2018. The Bank’s decision will be based on how the market performs between now and then.