The current level of interest rates is to stay at 0.25% after the last rate announcement in October by the Bank of Canada. Many experts approve of the Bank of Canada’s announcement.

The bank is expecting to keep the current figure until at least June 2010 which will mean the rate will have been low for over a year. As any real estate agent would tell you, one of the major factors in the property market improvement and continued prosperity in that area are these low interest rates.

Unfortunately there is always a few that demand interest rate increases. While we are seeing a huge bubble forming around the world this is making people decidedly uncomfortable. By increasing the rates of interest, many believe this will stop the bubble from bursting. Taking this into account, even with increasing prices in the housing market and faster turnover, the experts still agree that the Bank of Canada has made the right decision.

The most decisive reason is the confirmed growth of the GDP, which doesn’t seem to be following the BoC forecast of a 2% rise in the third quarter of 2009 (August growth was -0.1%). One of the other aspects concern the domestic industry which is still noticing very high levels of trade deficit and therefore a slower return to normal.

At this time there is also no evidence that leveraging is on the rise, whilst this has its risks, it’s also a sign that the market is more secure. There is more calmness around due to inflation running at roughly -1%. The other ingredient, is all this is the housing market, which doesn’t seemed to have crashed as expected. Housing passing through realtors office’s remain stable and prices are rising. A backlog of properties that are now selling are causing an increase in prices as properties are more and more in demand.

It’s more than probable that the Bank of Canada will not break its commitment and will hold down interest charges for at least eight more months. At least now the house buyer can feel confident in buying their new property.

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