From Bloomberg.com – Canada May Keep Lending Rate at 0.25%, Repeat June Commitment
The good news.
The Bank of Canada will probably keep its benchmark interest rate at a record low tomorrow and repeat a pledge to leave it unchanged through June.
The target rate for overnight loans between commercial banks will remain at 0.25 percent, where it’s been since April, according to all 26 economists surveyed by Bloomberg. The decision will be announced tomorrow at 9 a.m. New York time.
Economist predictions.
Carney will probably raise the key rate to 0.75 percent in the third quarter and to 1.5 percent by the end of the year, according economists surveyed by Bloomberg News. A separate survey for the U.S. shows economists don’t expect the Federal Reserve to raise its benchmark rate to 0.75 percent until the fourth quarter.
Low mortgage rates helped push existing home sales to a record in December, the Canadian Real Estate Association said Jan. 15. The average five-year mortgage rate was 5.49 percent last week and 5.25 percent in May, the lowest since 1951.
