Bank of Canada Leaves Rates Unchanged
July 16, 2019 | Posted by: Mortgage InGenuity Inc.
The Bank of Canada has left rates unchanged. Prime Rate remains at 2.50%
The Bank of Canada cites that rates will remain unchanged due to the Trump Factor and the uncertainty of New U.S. Policies on trade and protectionism. The Bank of Canada also open to the possiblity that it may have to drop rates in the furture depending on the Trump factor and how negative it would impact the Canadian Economy. Housing is also become an issue, as the Department of Finance and the Liberal Governement changed the mortgage rules back in October. CMHC has indicated we should see a slow down in Home Purchases and New Construction, which is driving our economy right now.
Banks continue to maintain their Prime Lending Rates .20% higher than the current Bank of Canada Prime Rate. We still see mortgage rates increasing due to new securitization of mortgage capital rules for the mortgage lending market. The major banks have done a good job passing those costs to consumers.
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