Interesting article I pulled from CMT today.
Money market traders are now placing odds at 60% that the Bank O f Canada will cut its Key Lending Rate by May 2012. Yes, you read that right.
The Bank of Canada meet today to discuss the economy and future of interest rates. As expected the prime/variable interest rate remained unchanged (bank overnight lending rate 1.00% and retail rate still at 3.00%). A strong loonie and has kept inflation in check which is the driving force behind higher interest rates. The Bank of Canada gave no indication of increasing rate over the short term. Next meeting is May 31st. This is great news for the mortgage financing markets. With variable rates as low as 2.25% this is a great time to be purchasing a new property or refinancing an existing mortgage to get a better interest rate.