Hafez Realty News

Bank of Canada keeps rates on hold citing uncertainty

The Bank of Canada announced on December 7th, 2016 that it was keeping its trend-setting target overnight lending rate at 0.5 per cent.

The Bank is currently taking a wait-and-see approach amid heightened uncertainty on a number of fronts, including the actual policy outcomes of the U.S. election.


On balance, the Bank said there remains “a significant amount of economic slack” in Canada.


Indeed, underlying inflation pressures are actually lower than various Consumer Price Index measures might suggest due to past exchange rate depreciation. That said, this phenomenon is fading at this point.


The Bank said it remains concerned about consumer debt levels and the housing market, but expects recently announced policy changes to home financing to mitigate these risks over time.


All things considered, the Bank will likely keep interest rates on hold for at least another year and perhaps even into 2018.


As of December 7th, 2016, the advertised five-year lending rate stood at 4.64 per cent, unchanged from the previous Bank rate announcement on October 19th as well as from a year ago.‎


The next interest rate announcement will be on January 18th, 2017, with an accompanying update to the Monetary Policy Report at the same time.

Comments:
No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Please note, your email will not be shown publicly
Your Email (will not be published): *
Comment: *
Please type the text as it appears above:
Hafez Panju
604-377-3689
Mobile Web App
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.