Will Weak Jobs Growth Keep Canadian Interest Rates Lower
Will Weak Jobs Growth Keep
Canadian Interest Rates Lower?
After The Recession of 2009
Bank of Canada artificially lowered its overnight lending rate.
By lowering the lending rate, the Bank of Canada was hoping
banks would lend more money to businesses and people.
According to the Experts at
Canada avoided the same kind of crippling recession to hit
the United States and many other major global economies.
However, the Canadian economy has not rebounded as
quickly as many had hoped.
Canadian Economy Is Struggling
More Than People Thought
In July, Statistics Canada tallied the addition of just 200
jobs to the economy, far fewer than predicted; analysts
were expecting a gain of 25,400 after posting a loss of
9,400 in June.
The poor hiring numbers mean the Bank of
Canada have little choice but to keep ultra-
low borrowing costs near record lows deep
into next year—and according to some,
maybe even beyond.
Ultra-low Interest Rate
Environment Is Welcome News.
That’s because the more your mortgage costs, the less affordable
it is to buy a home. Lower interest rates also free up capital that
can be put to better use elsewhere.
Today, five-year fixed-rate mortgages are available in the 2.99%
range. Five-year variable-rate mortgages are available in the 2.40%
For potential home buyers, it looks like fixed and variable interest
rates are going to stay low for the foreseeable future.
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