Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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The Target Overnight Rate is important to a borrower because it is somewhat loosely tied to the Prime Lending Rate set by the lenders.

Today the Canadian Central Bank will once again announce its target for the Overnight Lending Rate till 16 April 2014. Experts are not predicting any movement from the bank. The Overnight Rate is likely to remain at its current level till inflation becomes a serious problem.

Canadian economy has just started to walk out of the last downturn also the Loonie fell back to its historical value compared to US greenback.

Rate cut is not on the table anymore because of the raising pressure from inflation. That may also add fuel to inflation by bringing Canadian Loonie down.

While things are moving in a favorable direction, no one would like to rock the boat. Therefore the bank is not likely to take any step to change the rate for now.