Interest Rates: The Speculation Continues
As expected, the Bank of Canada has announced that the overnight lending rate is going to continue to sit at 0.25 per cent. However, the latest report from the Bank has financial specialists speculating about what’s going to happen in the next couple of months.
In one article, a mortgage agent expressed the opinion that mortgage rates will likely increase sooner than originally anticipated, while another article quotes the TD Bank chief economist as saying that he thinks that the Bank of Canada could wait until September to raise rates. Of course, there are those who think that rates will rise in July as predicted. Now that we’ve covered almost every option, the only remaining being that rates won’t rise at all, which is obviously not going to happen, who to believe?
I’m going to side with the Bank of Canada at this point and if they hold the rate longer, that’s fine. Just remember that rates can only go so much lower before they go up. As I’ve said before, there are three things certain in life: death, taxes and rising interest rates.
