Bank of Canada looks trapped on interest rate

Looks like the BoC will be forced to keep interest rates at 1% (bank rate 3%) next Tuesday June 5th.  Negative Growth in the global economy as well as well as lower than expected GDP growth of 1.5% compared to the forecast of 2.5% are key factors.

With the CDN dollar still overvalued, and the US federal reserve looking to keep it interest rate on hold until 2014, combined with the ongoing European mess continue to give good reason the Bank of Canada's best options will be to continue to exercise its wait and see approach. 

This is good new for borrowers looking to purchase/upgrade on property or refinance an existing mortgage as rates are at all time lows once again with a 5 year fixed rate of 3.09%. 

Click here to read the complete Globe and Mail article