Rates remain unchanged today as the bank cites inflation and wage growth as key reasons. Personally, I see this as being a long term, heads up caution that rates will be continuing to move up for some time to get back to more reasonalbe historical levels. We all know that we must ease into correcting the situation our country and is bank has created for its taxpayers.
“We think the bank is on track to raise rates by July,” said Sal Guatieri, senior economist at BMO Capital Markets.
“Clearly any bad news on the trade protectionism front or NAFTA talks would delay the Bank of Canada or if we see the housing market weakening more than expected in response to the tougher mortgage rules,” Guatieri added.