Happy New Year! Wishing you all the best in 2011….
Here’s the Bank of Canada’s schedule for key interest rate announcements in 2011.
January 18, March 1, April 12, May 31, July 19, September 7, October 25, December 6.
The Bank meets eight times a year to set the Target Interest rate. This rate directly affects the Bank Prime rate and Variable rate mortgages. It also affects Fixed rate mortgage indirectly.
Historically, the Bank adjusts this rate up and down between 2 and 3 times a year. In 2010, we had 3 rate increases of 0.25% each after a full 12 months of no changes. And most experts were forecasting for even greater rate hikes… This all changed when the economic recovery stumbled in many parts of the world, raising fears of a double dip recession.
Even today, there is still uncertainty about the economy in many parts of Europe and the U.S. At home, in Canada, we seem to be doing well….not great, but okay.
This uncertainty is delaying the expected interest rate hikes that so many experts were calling for in 2010…. Best guess now is for rates to remain stable until April or even July.
Enjoy the low rates…!