#Mortgage RATES to stay low for a while yet – that is great news!

Below is the technical, boring stuff we read to see where rates are going for you. Just ask us for the short version.

Short version is that the Bank of Canada is going to leave the rates the same for a while yet – like a year.

Long boring version is below.

Canadian Dollar Down in Wake of BOC Dropping Tightening Bias

TORONTO–The Canadian dollar is lower Thursday morning as it struggles with the implications of the Bank of Canada’s erasure of its tightening bias amid a broader retreat in commodity currencies.

The U.S. dollar was at C$1.0409 Thursday, from C$1.0384 late Wednesday, according to data provider CQG.

Its high for the session so far at C$1.0419 fell just shy of resistance around the C$1.0420 area.

The Australian and New Zealand dollars are also lower Thursday amid concerns about monetary policy and banking system liquidity in China. Any threat to economic growth in China puts pressure on commodities and commodity-linked currencies because Chinese demand for commodities is a key support for the asset class.

But the Canadian dollar is also grappling with the implications of the Bank of Canada’s decision on Wednesday to drop its 18-month-old tightening bias, a move some analysts believe could prompt a new round of weakness in the Canadian unit as it undermines the perception the Bank will raise interest rates before other advanced economies.

Currency strategists at UBS said in a report the Bank’s move derailed a rally they had expected to see in the currency.

“Having felt conditions were ripe for a CAD rally, we were taught a harsh lesson on Wednesday by the BOC: never ever underestimate the determination of a small, open economy’s central bank to defy expectations for a positive outlook,” they said.

The tightening effect on the Canadian economy from any gain in the Canadian dollar is simply too big for the Bank of Canada to risk, and the bank wanted to keep policy steady in order to retain maximum policy flexibility, UBS said.

Write to Don Curren at don.curren@wsj.com