Bank of Canada does not increase prime rate

At today`s scheduled interest rate announcement the Bank of Canada has left the prime rate unchanged. This is great news for homeowners in a variable rate mortgage, as prime will stay at 3.00% and variable mortgage rates can be found as low as 2.20%.

A look at the prime lending rate in 2010
Jan-May 2010        2.25%
June 2010             2.50%
July 2010              2.75%
Sept 2010             3.00%
For historical prime rates see the Bank of Canada.

In its official statement, the Bank of Canada “expects the economic recovery to be more gradual than it had projected” which is driven by “a more modest global recovery. The inflation outlook has been revised down..and core inflation is expected to hit 2% by the end of 2010.”

Those in variable rate mortgages will enjoy the extended period of low variable rate mortgages. However, with fixed mortgage rates at all time lows, it looks like all homeowners will sleep better tonight.