Bank of Canada prime rate decision: Rate unchanged at April meeting.
January economic data somewhat surprised the BoC and observers, giving cause for optimism due to some unexpected growth in certain sectors of the Canadian economy. However, February saw growth decline. In fact there was a 0.1% contraction to the economy.
As such, the BoC has maintained the prime rate unchanged and lowered its projections for 2019.
Many economists and observers are predicting that 2019 may see a drop to the prime rate and fixed mortgage rates.
You can read the full Bank of Canada press release here.
How will this change my interest rates?
The retail bank prime rate remains unchanged at 3.95%. Sit tight to see how future data will impact the movement of the prime rate down in 2019.
Is now the time to lock-in to a fixed rate mortgage?
Fixed rates have been dropping over the past 12 months we’ve seen them come down from a high of ~3.79% to 3.24% on posted rates.
With the possibility of future rate cuts I don’t advise converting to a fixed.
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