Interest Rates Stay Low

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By Elli Davis, January 20, 2010

$1000 CA by Liam K.

The Bank of Canada has announced on Tuesday that it is maintaining its benchmark interest rate at a very low level, 0.25 percent. The Bank Rate also stays unchanged at the level of 0.5 percent. And the deposit rate is 0.25 percent.

Regarding the consumer prices, Statistics Canada said today that those increased by 1.3 percent in December 2009 from December 2008. However, from November 2009, they actually decreased by 0.3 percent. Total CPI inflation was positive in the fourth quarter of 2009 and the core rate of inflation has been a little higher than it was predicted.

Bank of Canada expects the economy to rise by 2.9 percent in 2010 and by 3.5 percent in 2011. The factors influencing the recovery of our economy are still the same. Those are: increased confidence, improving financial conditions, global growth, policy support and higher terms of trade.

The complete update of the outlook for the economy and inflation by the Bank of Canada should be published tomorrow and the next date for announcing the benchmark rate is 2nd March 2010. I surely will inform you about both. The current situation is just ideal for buyers – enjoy the low rates!