Bank of Canada Prime Rate Update September 8, 2010

The Bank of Canada has announced that it is raising the the key interest rate, the rate at which banks borrow and lend amongst themselves, by 0.25% to 1.00%.

According to analysts, this may be the last interest rate hike until 2011. If you need to lock-in the best rate possible for either a new mortgage or a renewal, please CLICK HERE now to compare Canadian mortgage rates from banks and the top brokers.

“Bank Governor Mark Carney has long signaled the need to hike national borrowing costs in order to rein in economic activity and reduce inflationary pressures. But now, economists believe the central bank will hold rates steady at one per cent after Wednesday’s boost. TD is forecasting the bank’s rate at one per cent until at least the second quarter of 2011. The Bank of Montreal figures Canada’s one per cent interest to last even longer, until the July-to-September period in 2011.”

Read more: http://www.cbc.ca/canada/montreal/story/2010/09/07/bank-of-canada-rate-lookahead.html#ixzz0yrk8VDu4