The Bank of Canada announced December 3rd, 2014 that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
Although there was no change to the overnight rate, it should be noted that in the report the Bank of Canada indicates:
Canada’s economy is showing signs of a broadening recovery.
There has been no change to the Bank of Canada rate since September 2010.
In an article released by the Globe and Mail on Nov 25th, according to the Organization for Economic Co-operation and Development (OECD) we could see an increase in the Bank of Canada’s key interest rate as early as spring 2015.
So with the recent announcement from the BofC, maybe OECD is on the right track. The date to mark on your calendar would be May 27th 2015 if they are right! I guess we will just have to wait and see.
The next scheduled Bank of Canada date for announcing the overnight rate target is January 21st, 2015.
If you have questions about what this means for you, or want to take advantage of these historical low interest rates, please feel free to contact me anytime. I am completely available to you.
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