Bank of Canada Governor Mark Carney held his benchmark interest rate at 1 per cent Tuesday, citing heightened uncertainty over the global outlook and the European debt crisis, while hinting that he remains a long way off from even thinking about loosening the cost of borrowing. (Banks and mortgage lenders prime rate is always higher at 3.00%)
In explaining its decision to leave rates alone for a 10th consecutive meeting, as expected, the central bank said the external backdrop has become murkier since late October when it released its quarterly forecast. Conditions in world financial markets have worsened as Europe’s sovereign debt woes have deepened, it said, and the continent is hurtling toward a recession that will be “more pronounced” than anticipated just weeks ago.
The Bank of Canada meet 7 times a year to discuss interest rates and other economic data. Today’s session was the last for 2011. Expected forecast for 2012 is for interest rates to remain low if not flat. The current lower interest rates not only present great opportunities for consumers purchasing real estate but also for consumers looking to refinance or even early renew their mortgage. Even if there is a penalty involved, it may be still worth it to break your current mortgage and take out a new lower interest rate mortgage.