No Change to the Bank’s Overnight Rate


The Bank of Canada has maintained the overnight rate of 1%. This leaves Prime rate at 3%. For those of you in a mortgage product based on prime you will not see any adjustments to your rate or payments.

Some key highlights in the Bank of Canada’s announcement this morning were as follows:

  • Growth in the United States in the 3rd quarter of 2013 was stronger than forecast
  • U.S. economy is gathering momentum
  • Real GDP growth in Canada in the 3rd quarter, at 2.7%, was stronger than projected
  • The Bank continues to expect soft landing in the housing market
  • The Bank sees no reason to adjust expectation of gradual return to full production capacity until end of 2015
  • Inflation has moved further below the Bank’s 2% target

The next Bank of Canada overnight rate announcement is scheduled for January 22, 2014.

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