The Bank of Canada announced today that it is holding the benchmark rate steady. Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3%.
The announcement noted that “with underlying inflation expected to remain below target for some time, the downside risks to inflation remain important.” And that “the risks associated with household imbalances remain elevated.” With these considerations, the Bank is maintaining its monetary policy stimulus.
The next rate-setting day is June 4. Eight times a year the Bank of Canada sets the rate that governs each lender’s prime rate. Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates on the other hand are based on the bond market.