The Bank of Canada benchmark rate held at 1.75%. Difficulties with the Trade agreements is weighing heavily on the global economy, with no end in sight. While many of our international peers have lowered their rates, Canada’s overall economy is still strong and have not moved the rate since October 2018. Increases in real estate prices and lack of inventory make it more difficult to qualify and perhaps out of reach for people in some areas. In our opinion, real estate sales are a very important part of the puzzle and any negative impact in this sector will be a reason for the Bank of Canada to lower the benchmark rate which will effect all variable rate mortgages.
For now the Bank of Canada remains on the side lines and will have a wait-and-see approach. January 22, 2020 is the next scheduled Bank of Canada announcement.
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