The Bank of Canada is set to meet June 10,2008 to decide on changes to the key "overnight" interest rate which affects the bank prime and other lending rates as well. Analysts have been expecting a further cut in the rate by .25 basis points which could mean a drop in the bank prime from 4.75% to 4.50%. A change in the overnight rate usually results in corresponding changes about a day later in the bank rates. Many consumers still have confidence that we will enjoy these relatively low rates for the next while and are not rushing to lock-in their mortgage rates just yet.
Not everyone is in agreement with the theory of a potential drop in rates and are instead expecting a hold in the rate. Many expect the rate to begin a slight climb in the fall of this year and feel we may have touched bottom for a while at this level.
Make sure you check back here and for the results of the meeting and how it may affect your cost of borrowing.
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