The Bank of Canada (BoC) today announced it is maintaining its overnight lending rate (that is, the rate it charges chartered banks to borrow money) at 1/2 per cent. This non-action was widely expected, and is the 14th straight policy meeting where the BoC has declined to move what most observers consider to be Canada's most important economic lever.
The overnight rate is a key rate for the economy, as all Canadian banks and lenders tend to generally use this rate when setting their own "prime rates". Prime rates, in turn, affect those borrowers with variable rate mortgages and home equity lines of credit. Most banks have kept their prime rate at 2.7% since the last overnight rate change on the 15th of July, 2015.