Photo by Julia Manzerova
The Bank of Canada announced this morning that it will leave its key interest rate unchanged. In its statement the Bank indicated that it expects economic recovery in Canada to be more gradual than it had projected in July, "with growth of 3.0 per cent in 2010, 2.3 per cent in 2011, and 2.6 per cent in 2012." The Bank added that "this more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending." Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender's prime rate. While pricing for fixed-rate mortgages is not directly affected by today's announcement, rates on certain fixed products have been declining recently.