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Rates Holding Firm - May 21, 2011

Blog by | May 21st, 2011

Rates Holding Firm

The Bank of Canada has their next meeting at the end of May where many are predicting they will leave prime rate alone. In the past few months the Bank of Canada has been more and more reluctant to raise rates because of the growing uncertainty of Canada’s economy. Canada itself is extremely reliant on the price of commodities and as the demand for them goes, so to does our economy. With so much uncertainty in the debt stricken European Union and United States, the future outlook for the global economy does not appear as promising as it once was.  The Bank of Canada is watching our economy in order to make sure inflation doesn’t take off,however, also being cognisant of raising rates too quickly. More than likely we will not see any sort of rate increases from the Bank of Canada until at least the fall. This does not imply we couldn’t potentially see rates increase on fixed rate mortgages. Stay tuned for further rate updates.