Yesterday, the Bank of Canada announced they are maintaining the overnight rate at the 1% target.
Canada has had a strong third quarter, reporting a 2.7% GDP, which is much higher than what the Bank of Canada had projected. For the housing sector, it continues to remain strong and above expectations. It’s in line with the current demographic information available as well as there is an increase of home purchases despite some financing conditions.
Weighing the slight changes in the housing, business investment spending, and non-commodity export industries, the Bank of Canada judges the current substantial monetary policy remains appropriate. Therefore, has decided to remain the overnight rate at 1%.
The next time the Bank of Canada will announce the overnight rate will be January 22, 2014. The Monetary Policy Report will be published at this time as well, giving an outlook of the economy, risks, and inflation.
To see the Press Release click here.
For more blog posts on the real estate and mortgage industry, click here.
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