For the 4th meeting in a row, the Bank of Canada left interest rates unchanged as expected at its 1st meeting of 2024 on Jan 24th. The most noteworthy part of its announcement was the lack of reference to possible future rate hikes although the Bank is still concerned about inflation. Many economists believe that is an indication that the 1st rate cut is not coming in the near term but instead perhaps after June or July later this year. Bank Prime is unchanged at 7.2% and variable rate mortgages can be had for about 6.45%. If Prime goes down by 1% in 2023 which seems to be the consensus, then variable rate mortgages would be 5.45% by the end of this year and for those of you that have Secured Lines of Credit, your rates will decrease to 6.2% to 6.7%. Presently with all the interest rate volatility, it is certainly a complicated decision to choose between whether to go fixed or variable so count on us at Lotus Loans & Mortgages Corp here in Mississauga to help by analyzing one’s unique situation. We are here to offer unbiased advice and the service is free! Stay tuned for the next announcement on March 6th.