Bank of Canada Announcement - Rates Remain Unchanged

Ottawa -
The Bank of Canada announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

Overall, economic momentum in Canada is slightly firmer than the Bank had expected in January. The external headwinds facing Canada have abated somewhat, with the U.S. recovery more resilient and financial conditions more supportive than previously anticipated. As a result, business and household confidence are improving faster than forecast in January.

The Bank projects that the economy will grow by 2.4 per cent in both 2012 and 2013 before moderating to 2.2 per cent in 2014. The degree of economic slack has been somewhat smaller than the Bank had anticipated in January, and the economy is now expected to return to full capacity in the first half of 2013.

Great news for home buyers that wish to move up into a bigger home, such as the ones in the Rathwood community in Mississauga, Ontario. Houses in Rockwood Village or Fleetwood Village, as well as properties on Hickory drive, surrounded by parks.

Next rate announcement comes down on June 5, 2012.