Bank Rate Remains at 1%
CBJ — The Bank of Canada has kept its key overnight benchmark lending rate steady at 1%. The move comes as no surprise to most financial analysts after the bank implemented two small increase earlier this year.
The decision by the Central Bank for keeping the rate the same is due in part to see the full effects of the slight increases that came in July and September. The ripple effects are still moving through the economic system.
The bank noted that economic data has been coming in within range of what it was forecasting as recently as 60 days ago. Exports are a bit lower than expected, but the job market is a bit better than expected, providing somewhat of a balance.
The central bank’s rate is what banks charge each other for small overnight loans. It filters into the overall economy by influencing the rate that consumers get for their variable rate savings accounts and loans such as mortgages.
Eight times a year, the bank’s board of governors meets to decide where to set the bank’s rate.
The next rate decision is scheduled for Jan. 17.