Canada column for Sunday, Dec. 10/17
THE CANADIAN REPORT
(c) By Jim Fox
For people with money in the bank or invested, Canada’s central bank decision to keep interest rates steady wasn’t encouraging.
However, for those with loans and mortgages, fees will remain unchanged as the Bank of Canada opted not to raise its trendsetting “overnight” rate for the third time this year.
So, the rate will stay at 1 percent and the commercial bank prime lending rate at 3.2 percent for now.
“The current stance of monetary policy is appropriate,” the bank said, adding that it will be “cautious in making future adjustments to the policy rate” with less monetary policy stimulus required over time.
The bank raised its rate by 0.25 percent in July and that amount again last month after no movement in the previous two years.
A surprise for economists was the Canadian dollar losing about one cent against the U.S. currency to 78.15 cents after the bank failed to increase rates.