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Real Estate News: Bank of Canada annouces it will maintain overnight rate at 0.25%

December 8, 2009

Bank of Canada maintains overnight rate target at 0.25% and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

While significant fragilities remain, global economic developments have been slightly more positive and the global outlook has improved modestly relative to the Bank’s projection in its October Monetary Policy Report (MPR).

The main drivers and the profile of the projected recovery in Canada remain consistent with the Bank’s views in the October MPR. The Bank continues to expect economic growth to become more solidly entrenched over the projection period and inflation to return to the 2 per cent target in the second half of 2011.

Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.

Read the full release from the December 8, 2009 interest rate announcement from the Bank of Canada.

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2 Comments leave one →
  1. December 23, 2009 6:04 pm

    I’m just concerned with what all of these low interest rates are going to do to inflation.

    • December 28, 2009 10:08 am

      I agree. There are many concerns that go along with the historically low interest rates. I think we will see the impact in the second half of next year.

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