In a terse statement, the Bank of Canada maintained its benchmark overnight rate for the fifth consecutive meeting and stated that economy was performing in line with the projections in the Bank’s April Monetary Policy Report (MPR). Following a slowdown in economic activity late last year and in the first quarter of this year, the Bank’s press release said that evidence was mounting that economic growth was rebounding in Q2.
Here’s an excerpt from the Bank of Canada’s May 29th announcement:
“Continued strong job growth suggests that businesses see the weakness in the past two quarters as temporary. Recent data support a pickup in both consumer spending and exports in the second quarter, and it appears that overall growth in business investment has firmed. That said, inventories rose sharply in the first quarter, which may dampen production growth in coming months.
The global economy is also evolving largely as expected since April, although the recent escalation of trade conflicts is heightening uncertainty about economic prospects. In addition, trade restrictions introduced by China are having direct effects on Canadian exports. In contrast, the removal of steel and aluminium tariffs and increasing prospects for the ratification of CUSMA will have positive implications for Canadian exports and investment.
Inflation has evolved in line with the Bank’s April projection. The Bank expects CPI inflation to remain around the 2 % target in the coming months. Core inflation measures all remain close to 2%.”
It is still a great time to have a variable rate mortgage today especially because there are several lenders who are currently offering some deep discounts upon qualification! If you are considering renegotiating your current mortgage for a lower rate or have high-interest debt you wish to consolidate, please do schedule a call with me by clicking here and I would be happy to review your mortgage options together.
Click here for the full announcement. The next scheduled date for announcing the overnight rate target is July 10, 2019.
