Interest Rate At 4.25%

On Tuesday, March 6th, Bank of Canada decided to keep overnight rate unchanged at 4.25%. This is the sixth consecutive session that resulted no interest rate change. Why this is important? If you have credit cards, mortgages, line of credit or savings accounts – Bank of Canada’s overnight rate is very important because this rate determines what your interest will be on your credit cards, mortgages, line of credit or savings accounts. Most probably there will not be any increase in the next 12 months. Low unemployment rate, low inflation and predictable economic growth are in line with central bank’s expectations and it is highly unlikely that there will  be any change in interest rate anytime soon.