CMT Team·Bank of CanadaMortgage Rate Trends·March 8, 2012Canada’s Key Rate Stays At 1.00% Once again, the Bank of Canada left the country’s key interest rate unchanged today at 1.00%. That’s where it has stood since September 2010. In turn, prime rate should remain at 3.00%, making today’s BoC meeting mostly inconsequential for variable-rate mortgage holders in the near-term. Economists were looking to the Bank’s official statement for changes in its tone. Here’s what it said: There have been “tentative signs of stabilisation in European…sovereign debt markets” “…The outlook for the Canadian economy is marginally improved from the January monetary policy report” “Canadian household spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk.” “U.S. activity” is “stronger-than-anticipated” “The profile for core and total CPI inflation is somewhat firmer than previously anticipated” In short, today’s BoC report seemed slightly more optimistic than the Bank’s recent announcements. 5-year bond yields (which lead fixed mortgage rates) responded by ticking a few basis points higher on the news. The street consensus currently suggests that prime rate will resume higher in the second quarter of 2013, according to a recent Reuters poll. The next BoC meeting is Tuesday April 17. Rob McLister, CMT 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.