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Bank of Canada Announcement
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3.0%. What does this mean for mortgage borrowers? Well, first of all, it means that most major banks and lending institutions will keep their prime lending rate at 4.75% for the coming month. Typically, we consider stability in the key overnight lending rates to overall stability in the mortgage market.
The Bank of Canada meets approximately every 6 weeks to determine the key overnight lending rates for the coming period. The next scheduled date for announcing the overnight rate target is 15 July 2008. Stay tuned for our next update.
