No rate change any time soon

The Bank of Canada met this morning and, frankly, it was not very major news. The announcement didn't even appear in the top stories in my CBC mobile app this morning indicating that the media has given up on trying to use scare tactics surrounding rate increases with the public. The Bank gave no indication that it would be increasing rates any time soon and sited economic challenges in Europe, the US and China. I heard on a news program while, flying back from Regina last week where I was visiting my beautiful 10 month old niece, that China's economy had grown 9-10% every year for the last several years and that this year they are expecting only 8% growth. Pretty amazing. This is the 15th consecutive meeting that the Bank of Canada has not changed their rate and no changes are expected until 2013. New mortgage lending guidelines were not even mentioned in the Bank of Canada's statement this morning. I believe that the new mortgage rules have been put in place to slow the housing market since interest rates cannot be adjusted at this time. The market does not seem to be slowing much, however, and perhaps the mere conversation around lending will spark people's interest to get into the market. If you have questions about how the rule changes impact you, please contact me. I am happy to offer you a complimentary mortgage review.