Brokers on bank rate

Brokers on bank rate

Brokers on bank rate An overwhelming number of brokers believe the Bank of Canada will maintain the overnight rate at 0.75 per cent with its rate announcement today.

“I think they will keep it the same – there hasn’t been enough (economic) change in the past few months since the previous change,” Jean-Guy Turcotte with Dominion Lending Centres Regional Mortgage Group told MortgageBrokerNews.ca. “I actually think it will be flat for the next two months.”

A recent MortgageBrokerNews.ca poll revealed 87 per cent of brokers believe the Bank of Canada will hold its overnight rate.

Meanwhile, four per cent believe the Central Bank will hike the rate and nine per cent believe it will be lowered.

While holding the rate seems like the obvious choice, brokers know nothing is certain when it comes to the BoC’s decisions, after it surprised the market with a rate cut in January.

However, many experts also agree that the rate will remain unchanged.

“The Bank of Canada is expressing optimism that the Canadian economy will improve during the remainder of this year,” Will Dunning, chief economist for CAAMP wrote as part of RateSupermarket.ca’s expert panel. “On that basis, we should not expect any changes in its overnight rate at the next meeting.

“But, I see some risks that the economy will be weaker than the Bank of Canada expects,” he continued. “In that case, there could be another surprise reduction at the meeting dates of July 15 or September 9 (by a quarter point).”