Today the Bank of Canada announced that they will hold the overnight lending rate at 0.25%. Their press release describes a positive outlook for economic recovery, even better than their October review, however they say the economy is still dependent on monetary and fiscal stimulus. Interest rates will stay low for another term. The next interest rate review date is April 20th.

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archived from December 9th, 2009

The Bank of Canada yesterday announced that they will keep it's overnight lending rate at 1/4 per cent and is expected to remain until end of second quarter 2010. The rate has remained unchanged since April 21 2009.

Have you ever stopped to think on why they change the overnight rate? What is the overnight lending rate anyway? One of the functions of the Bank of Canada is to set monitor and control certain economic conditions in order to promote growth and stabi...
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