Interest rates expected to remain on hold

By The Canadian Press - August 09, 2011

OTTAWA - A pledge by the U.S. Federal Reserve to keep its key interest rate at a record low means interest rates in Canada will likely stay on hold as well.


BMO deputy chief economist Doug Porter says the Canadian central bank will likely keep its key overnight rate target at one per cent well into next year.

Before the recent financial turmoil, Porter says he had expected two quarter-point rate hikes by the Bank of Canada by the end of this year.

The Bank of Canada last raised its key overnight rate target in September last year.

The rate affects the prime lending rate at the country's big banks and influences the rates charged on variable rate mortgages and lines of credit.

OTTAWA - A pledge by the U.S. Federal Reserve to keep its key interest rate at a record low means interest rates in Canada will likely stay on hold as well.


BMO deputy chief economist Doug Porter says the Canadian central bank will likely keep its key overnight rate target at one per cent well into next year.


Before the recent financial turmoil, Porter says he had expected two quarter-point rate hikes by the Bank of Canada by the end of this year.


The Bank of Canada last raised its key overnight rate target in September last year.


The rate affects the prime lending rate at the country's big banks and influences the rates charged on variable rate mortgages and lines of credit.