Today, the Bank of Canada (BoC) maintained its target for the overnight rate at 1.50%. The Bank Rate is correspondingly 1.75% and the deposit rate is 1.25%. This means that the Prime rate on your mortgage, line of credit or student loan will remain at 3.70%.

BoC has shared some insight on the current economic conditions in relation to their announcement:

“The Canadian economy is evolving closely in line with the Bank’s July projection for growth to average near potential. Following growth of 1.4% in the first quarter, GDP rebounded by 2.9% in the second quarter, as the Bank had forecast. GDP growth is expected to slow temporarily in the third quarter, mainly because of further fluctuations in energy production and exports.

While uncertainty about trade policies continues to weigh on businesses, the rotation of demand towards business investment and exports is proceeding. Despite choppiness in the data, both business investment and exports have been growing solidly for several quarters. Meanwhile, activity in the housing market is beginning to stabilize as households adjust to higher interest rates and changes in housing policies. Continuing gains in employment and labour income are helping to support consumption. As past interest rate increases work their way through the economy, credit growth has moderated and the household debt-to-income ratio is beginning to edge down.”

The next announcement will be on Wednesday, October 24, 2018.
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Bank of Canada, “Bank of Canada maintains overnight rate target at 1 ½ per cent”, accessed September 5, 2018, https://www.bankofcanada.ca/2018/09/fad-press-release-2018-09-05/