Greetings ALL
It is a new school year but the world has not yet decided that it is ready to do great things again. I cannot help but think that the West's reluctance to go to war again, while not a bad choice, because most wars don't solve problems, it does mean continued uncertainty on how to stop a massive ego on one front and "medieval mayhem" on the other. (Modern politics is far from simple.) Harper's reluctance to spend his vote getting pot of money supporting Canada's allies with increased military spending is either a good idea, or a bad one, depending on how big a view you take of all the events going on. As with anything big, history and the victors will decide the true value of these choices.
In the meantime, on the homefront it is still good news for borrowers. With a chance to get 2.79% 5 year fixed mortgage, the BoC announcement is reaffirming for home buyers. They have time.
Things are going as the Bank of Canada expected, economically speaking, which is why the target for the overnight rate is still sitting at 1%.
The Bank announced on Wednesday that, with the global economy performing largely as expected and Canadian inflation settling down again, there doesn't seem to be a need to increase interest rates-for now.
Stronger growth in the second quarter-due largely to surging exports-has brought the GDP almost exactly to the point the Bank projected in July. The housing market continues to perform stronger than expected, but so far it hasn't impacted inflation enough to warrant higher interest rates.
For now, risks contributing to the increase of inflation seem to be balanced, which is why the Bank ultimately decided to stand pat. But it's not making any promises going forward, however, as it says only time will tell what the global and Canadian economies will look like heading into the October 22 announcement.
If you're wondering how this announcement affects your specific situation-or if you have questions about variable mortgages, locking in or anything else mortgage-related—feel free to drop me a line. I'd love to chat! 416.486.1113
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