Interest Rate Forecast

Earlier this month, Finance Minister Jim Flaherty gave his interest rate forecast, stating Canada will face global pressure to raise interest rates in 2014, as the United States begins to step back from its policy of extraordinary economic stimulus through intervention in bond markets.

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However, this week at the Bank of Canada first meeting of the year, they made no change to the overnight lending rate.  Therefore no change to the current prime rate of 3%.

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In the past week we have seen some of the non-bank lenders increase their discount on variable rate products from Prime-.4% to Prime – .55% while the banks remain unchanged.