Interest rate to remain unchanged

Canada's central bank - Bank of Canada - kept its key interest rate unchanged yesterday (July 21st) as expected and said the country's economy is beginning to recover from recession.

The central bank said that Canadian economy will shrink by 2.3 percent this year, far better than the 3-percent fall its forecast in April. Bank of Canada expects the economy to return to 3 percent growth next year, a half-point better than its April projection.

The Bank also repeated its previous statement that it plans to leave the rate unchanged until the middle of 2010. So, folks, if you have a variable rate mortgage you will continue to enjoy low-low mortgage payments for almost another year for sure. Historic low rate should also keep first time buyers interested in entry level homes. 

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