Economists say the Bank of Canada’s one per cent interest rate probably won’t rise on Tuesday and might not change until the fall.
The rate must go up eventually, considering expected economic growth over the next two years. The government is also eager to hike rates to discourage increasing levels of household debt.
But there’s a question mark on how recent world events like the earthquake in Japan, inflation in China and a sluggish America will affect our economy, which have in turn made the central bank cautious.
If the predictions by economists and meteorologists are right, Canadians will have a great summer enjoying both the warm weather and also incredibly low rates on mortgages.