News Releases

TORONTO, ON, September 10, 2009 – The Bank of Canada signalled this morning that its overnight rate will likely remain at 1/4 per cent until the middle of 2010.

The decision has implications for the country's economic recovery as well as consumers, including home owners and potential buyers.

BMO Senior Economist Michael Gregory and John Turner, Director, Mortgages for BMO Bank of Montreal, are available to discuss the latest news from the Bank of Canada and what it means for Canadians.

“At least for short term maturities, Canadians won't be facing higher borrowing costs, said Mr. Gregory. “It looks like Canadians will continue to benefit from low rates, and may even see such rates for a longer period if the Canadian dollar continues to strengthen.”

“With promising low interest rates, now may be a great time to purchase a home and take advantage of a low rate and ultimately a low payment," said Mr. Turner. "We can provide clarity around topics such as making your first home purchase or choosing between a fixed or variable rate mortgage. Also, for customers who already have a mortgage, our new BMO SmartSteps can help you take years off your mortgage payment and save you thousands of dollars simply by changing your payment frequency.”

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