Canada`s key interest rate will begin 2012 exactly where it`s being since September 2010 unchanged at 1.00%. For retail lending and mortgages this is 3.00% which is the current prime rate. It is the longest Stretch on record without a Bank of Canada rate change.
The current forecast for a improving economy soon is slim. With Europe and the US still in trouble economic recovery is not expected until late 2013. The next meeting for the Bank of Canada will be in March where again no rate increase is expected.