Mark Carney, the Bank of Canada Governor, kept the overnight rate at 0.25%…(yawn…)… The rate that affects all Bank Prime rates and Variable Mortgage Rates has remained at this level since April 2009….
In the announcement, the Bank of Canada stated they were concerned about inflation increasing a little faster than they had forecast. The Economy also grew at an annualized rate of 5% in the fourth quarter of 2009….. (personally, I think it would be surprising to see it continue to grow at this pace…. )
Governor Carney has repeatedly stated he will not increase the rate before June… well June is approaching and some of the Economists are starting to forecast for possible rate hikes as early as June… but nothing too drastic..
One rule of thumb or interesting historical trend is that fixed rates usually increase first or before the variable rates rise….we’ll be watching the bond market (bonds affect fixed rates)….