Bank of Canada Announcement

Today, the BANK OF CANADA announced that it was maintaining its target for the overnight rate at one per cent. The Bank Rate is correspondingly one and a quarter per cent and the deposit rate is three quarters of a per cent. Economists do not predict an increase in the overnight rate until the end of this year.

The financial institutions will also keep their Prime Lending rate at 3%. Fixed rates have remained steady at record low rates of 3.39% for a 5 year fixed term while variable rates are staying closer to Prime. Lenders are now offering special promotions of 4 year terms at 2.99%.

The next Bank of Canada Rate Announcement will be on March 8, 2012.