The Bank of Canada rate, that impacts rates you get from your bank for savings accounts, mortgages and lines of credit, is staying at 1.25-percent.
(Fred Chartrand/Canadian Press)
Governor Stephen Poloz justified the central bank’s decision saying the rate will remain where it is because the economy has slowed more than expected.
”Inflation’s on target and the economy’s operating close to potential. Now that statement alone underscores the considerable progress that’s been seen in the economy over the past 12 months. That said, interest rates remain very low, relative to historical experience. And this is because the economy is not yet able to remain at full capacity on its own.”
But the bank says stronger inflation and wage growth could eventually encourage it to once again raise rates.
The next scheduled bank announcement is May 30.
Investors predict the odds are 50/50 there’ll be a rate increase.