Interest Rate Watch! Condoguys Vancouver
Interest rates directly effect the price of property as it fluctuates our payments rise and fall. With record low rates we are going to see interest rates increase and we have seen banks raise fixed mortgages recently. It looks as though the Bank of Canada may keep rates at 1%. Below is an excerpt from an article that was just released by Bloomberg
Carney Likely to Keep Canada Benchmark Rate at 1% Amid Threats to Recovery
The Bank of Canada will probably keep its key interest rate unchanged today, and may say a strong currency and Europe’s sovereign debt crisis are threatening a domestic recovery that has been faster than they projected.
The target rate for overnight loans between commercial banks will remain at 1 percent, where it has been since September, according to all 28 economists surveyed by Bloomberg News.
While Governor Mark Carney and policy makers at the Ottawa- based central bank may raise their estimate of economic growth for this year from a January forecast of 2.4 percent, they may also highlight new and continuing threats to Canadian exports. Since the bank’s last decision on March 1, Portugal has sought a fiscal rescue and Japan was hit by an earthquake and tsunami.
“The bank has to be concerned with some of the potential downside risks to international growth,” said Derek Burleton, a senior economist at Toronto-Dominion Bank, who predicts a July rate increase. “They are going to signal they aren’t quite prepared to raise rates,” he said in a telephone interview from Vancouver.
For the full article go to: http://www.bloomberg.com/news/2011-04-12/carney-may-keep-canada-lending-rate-1-amid-threats-to-recovery.html
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