Bank of Canada Interest Rate Announcement January 2012

The Bank of Canada has announced that the key interest rate will remain at 1.00% This comes as no surprise as no rate hikes or cuts were anticipated by the vast majority of analysts and financial writers.

Mortgage rates however, may be on the decrease due to cheap bonds.

“A strong international demand for bonds from Canada’s biggest banks is trickling through the system and pushing mortgage rates to record lows at the consumer level.

The Bank of Montreal moved its five-year fixed mortgage rate to 2.99 per cent late Thursday — the lowest posted rate from a major bank in Canadian history.”

See cbc.ca for the full story