Ben Bernanke, U.S. Federal Reserve Chairman announced yesterday that the American benchmark interest rate would stay low until at least late 2014.
Here in Canada, as recently as the weekend, Bank of Canada Governor Mark Carney highlighted that our economy continues to show resilience. Predicting modest growth for this year, he points to 2 per cent inflation as the economic speed limit. It is likely that Mr. Carney will not make an interest rate adjustment unless inflation becomes an issue.
As global economies work to achieve stability, the low rate policies of Canada and the U.S. should maintain mortgage rate stability for the next 12 to 18 months, unless Bond Rates begin to shift. More on that next time.
Here’s a few articles discussing the above.
http://www.cbc.ca/news/world/story/2012/01/25/federal-reserve-interest-bernanke.html