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Apr 12, 2011 - 1 minute read - Comments - business news

Bank of Canada Holds Rates Steady

The Bank of Canada decided to leave its overnight lending rate at the current level of 1%. This is the rate that the banks base their prime lending rate on. This is good news as the cost of borrowing will remain stable for small business loans based on prime at least until the Bank of Canada’s next meeting on May 31st. The Bank noted that the economy is growing slightly faster than expected. Trying to predict the future is a bit of a fool’s errand but it seems to me that rate hikes are likely as the economy strengthens.