The Bank of Canada announced on Dec-11 that it will decrease the Prime Rate by .50%

 

Key takeaway from the BOC announcement:

• Inflation rose to 2% (1.6% in September)

​

• Unemployment rate: 6.8% (up 0.3 percentage points from October)

​

• Bond Yields actually rose after the election to 3.30%, but have since dipped back down to 2.80%. Fixed rates to potentially correct because of this, as well as such a large decrease.

​

• There is speculation that fixed rates are nearing their bottom for the foreseeable future with economists only expecting another .5% - 1% drop over the next 12 months.