Bank Of Canada Leaves Rate Unchanged - Great Opportunity For Home Buyers

OTTAWA — via CP24 - The Bank of Canada has left the key overnight interest rate unchanged at one per cent, but is signalling the days of super-low borrowing costs are nearing an end.

The bank says that's because economies around the world and in Canada are doing better than it previously thought and inflation is stronger.

For Canada, the bank believes that means economic growth of 2.4 per cent this year, well above the two per cent expectation it set in January, although next year's expansion will be more moderate at 2.2 per cent.

The bank envisions the economy will return to full capacity for the first time since the recession in the first half of next year -- one or two quarters ahead of its expected pace.

In light of the reduced slack, the bank says some modest withdrawal of what is views as very stimulative interest rates may be in the offing.

The next policy setting is June 5 but it gives no hint as to whether it has such an early move in mind. The central bank has kept interest rates at the current level since September 2010.

Asif Khan, ABR
www.asifkhan.ca
Re/Max All-Stars Realty Inc.
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Posted via email from Markham Real Estate Today with Asif Khan