Bank Of Canada Keeps Interest Rates At 3%
OTTAWA July 15, Bank of Canada warns of inflation and slow growth that’s why the bank holds steady on the key interest rate that is 3%. Anyway, The combination of slow growth and high inflation is a difficult puzzle for policymakers because battling one ailment exacerbates the other.
There are various schools of thought who have been predicting this critical issue but it’ll be normal soon because most of the problems are seem external rather than internal economical situations. Anyhow, most of the economists already expected the same solution from the Bank of Canada like the bank left its key interest rate unchanged.
In accordance with the Bank’s announcement, lending institutions in Canada are expected to keep their prime lending rate unchanged and steady too. The prime rate used by lenders is the base rate that they use in pricing loans to their most creditworthy customers. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate. Anyhow, Pricing for fixed-rate mortgages is not directly affected by the bank’s decision.