Robert McLister·Mortgage Rate Trends·October 20, 2009BoC Makes No Change to Rates As expected, the Bank of Canada (BoC) did not alter Canada’s key lending rate. The Bank’s overnight target remains at a record-low 0.25%. In its much anticipated statement today, the BoC said: “A recovery” is “under way in Canada.” “…Persistent strength in the Canadian dollar (is) working to slow growth and subdue inflation pressures.” “Growth is expected to be slightly higher in the second half of this year than previously projected but to average slightly lower over the balance of the projection period.” “Inflation is also expected to return to the 2 per cent target in the third quarter of 2011…” The BoC also reaffirmed its conditional commitment to keep the overnight target rate unchanged “until the end of the second quarter of 2010.” Bond yields dropped on today’s news. Both the 2-year and 5-year government yields were down eight basis points as of this writing. 2.90% is now a short-term point of reference on the 5-year yield chart. We probably won’t see 5-year fixed rates increase much further unless yields break above this number. In terms of variable mortgages, there is no economist in Canada (that we know of) who is projecting an increase in prime rate this year. The Bank of Canada’s next interest rate meeting is December 8. This will be its last scheduled meeting of the year. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.