Today, the BANK OF CANADA announced that it was maintaining its target for the overnight rate at one per cent. The Bank Rate is correspondingly one and a quarter per cent and the deposit rate is three quarters of a per cent. Economists do not predict an increase in the overnight rate until the end of this year.
The financial institutions will also keep their Prime Lending rate at 3%. Fixed rates have remained steady at record low rates of 3.39% for a 5 year fixed term while variable rates are staying closer to Prime. Lenders are now offering special promotions of 4 year terms at 2.99%.
The next Bank of Canada Rate Announcement will be on March 8, 2012.
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