Variable Rate holders will be happy with the Bank of Canada's decision today to stand by what they had previously said and indicated and not raise the overnight lending rate. Despite some people speculating that they would follow Australia's lead, the BoC did not raise the rate and this also helped to cool off the raising CAD dollar.
For a full story on today's decision - see Reuters News
[Source - Reuters]
OTTAWA (Reuters) - The Bank of Canada extinguished speculation on Tuesday that it would follow Australia in hiking interest rates quickly, warning that favorable economic developments were being undermined by the strength of the Canadian dollar.
The bank kept its key overnight interest rate at a very low 0.25 percent and reiterated its intention to keep it there through mid-2010.
Far from giving any suggestion of an early exit from its extended low-rate strategy, which is designed to stimulate the economy, the bank said return to economic normalcy would be delayed. Full Story Here
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