Not sufficient

The Bank of Canada met this morning and kept the Prime rate stable. Although both global and domestic economies are looking stronger, the Bank stated that there was not sufficient improvement to merit an increase and that our economy continues to require monetary stimulus. The announcement confirmed views that the economy remains fragile and prompted the Canadian dollar to drop. Based on the slower than expected growth, most economists now agree that a change in 2014 is no longer expected and that the first increase to Prime will likely come in 2015. The stability of prime has made variable rate products popular again. If you are unsure if you should consider a variable or a fixed rate, just ask me. I'll be happy to help you make the right decision for you.