The Bank of Canada’s last interest rate announcement was October 23rd and as expected there was no change in the overnight interest rate. Variable mortgage rates are tied directly to the prime rate of interest which is in turn tied directly to the overnight interest rate. No change in the overnight rate means no change to your variable rate mortgage.
The Bank of Canada only meets 8 times per year to announce changes, if any, to the overnight interest rate. The final meeting date for 2012 will be on December 4th. I can say with confidence that there will be no change to variable rate mortgages for the remainder of this year.
The Bank has not changed the overnight rate since September 2010, but has recently been threatening to raise rates to counter inflation. The fact is, inflation has been well under control since we emerged from the recession, and finally this past October, the Bank of Canada softened its wording on any future interest rate changes. The rest of the world knew that Canadian interest rate hikes are not going to happen any time soon and it’s nice to see that the Bank of Canada is finally admitting it.