Reasons the Bank of Canada keep interest rate unchanged in March 2018
Rate unchanged at 1.25%.
In line with financial market expectations, the federal bank, Bank of Canada announced on March 7, 2018 it keeps trend-setting overnight interest rate unchanged at 1.25%.
- Canadian Growth came weaker in fourth quarter
- Wage growth is not line
- Bank wants more time to see the impact on housing markets from recent federal and provincial policy measures.
- Uncertainty of NAFTA negotiations with US.
Benchmark rate remains unchanged at 5.14%, which as of January 1, 2018, all mortgage applicants must qualify at no less than Benchmark five year lending rate for their financing.
Bank of Canada repeatedly announced that it will continue to raise interest rates, although economic development and higher inflation rate will determine any further raises in interest rates.
Next lending rate change announcement is following in April 18, 2018