The Bank of Canada has once again decided to maintain its target for the overnight rate at 1 per cent, believing that the combination of interest rates near historic lows and the financial system functioning well is a considerable monetary stimulus. The next BoC meeting is set for April 17th.
“Recent developments suggest that the outlook for the Canadian economy is marginally improved from the January Monetary Policy Report,“ says the Bank in its statement. "Although the economy will likely grow faster than forecast in the first quarter due to temporary factors, underlying economic momentum remains around trend, balancing domestic strength and external weakness.“
The mortgage battle goes on. BMO came back with two new low rate promos: a five-year fixed at 2.99 per cent (started March 8, 2012) and ten-year fixed at 3.99% (started March 11, 2012). Both promos run for three weeks, until March 28th, 2012. "We’ve heard talk that TD and RBC will not match BMO’s pricing on the five-year term. We’ll see,“ wrote Rob McLister for CanadianMortgageTrends.com.