No Change to Prime Rate

The Bank of Canada is keeping the target for the overnight rate at ½ per cent. This means the prime rate will remain at 2.7 percent for most banks.

In a rather brief interest rate announcement last month, the Bank noted that, while there are “significant uncertainties” that could impact the outlook for the Canadian and global economies down the road, for now, things are consistent with the Bank’s January projections, so it’s staying the course.

The Bank did note that CPI inflation rose to 2.1 per cent in January-something the Bank says reflects higher energy prices due, in part, to new carbon pricing measures in two provinces. Because of this, the Bank believes the increase in inflation is temporary.

With the Prime rate staying the same, many mortgage specialists are continuing to recommend that clients stay in their existing variable rate mortgages. The date for the Bank of Canada’s next announcement is scheduled for April 12, 2017.