No news is good news for borrowers; interest rates remain at all-time lows. According to the primary dealers of Canadian govt securities, most say they do not expect any increase until at least the 2nd half of 2016 or later (according to a recent article from Dow Jones Business Week).
Here is an excerpt from the BoC’s announcement this morning:
The Central Bank will maintain its target for the overnight rate at 1/2%.
According to the Bank of Canada, global economic growth has been weaker than expected but improvement is expected over the next two years.
“Looking ahead to 2016 and 2017, the positive effects of cheaper energy and broadly accommodative financial conditions should become increasingly evident,” the Bank said. “In the United States, the economy is expected to continue growing at a solid pace with particular strength in private domestic demand, which is important for Canadian exports.”
Closer to home, the BoC says Canada’s economy has improved in line with its own July projections.
“In non-resource sectors, the looked-for signs of strength are more evident, supported by the stimulative effects of previous monetary policy actions and past depreciation of the Canadian dollar,” the Bank said. “Household spending continues to underpin economic activity and is expected to grow at a moderate pace over the projection period.”
However, lower oil prices since summer have dampened Canada’s terms of trade, according to the Bank, which has led to a more modest revision of the Bank’s growth forecast for the next two years.
The economy is expected to return to full capacity in mid-2017.
More info can be found here: http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21/