For 21 consecutive policy decision meetings, the Bank of Canada has kept their Overnight Rate at 1%. Citing an economy that is underperforming, the rate is being kept steady … for now. Outgoing Bank of Canada Governor, Mark Carney, in his penultimate target rate policy decision, predicts that the Canadian Economy will grow in 2014, but will not reach full capacity until mid-2015. What does that mean for us, as consumers? It likely will mean that the target for the overnight rate (upon which banks base their lending and investment interest rates) will remain steady for the forseeable future.
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