Governor Stephen Poloz is expected to take a wait and see approach with the interest rates tomorrow. This is a cautious approach given the current financial issues facing Canada. Renegotiating NAFTA, tariffs, softwood lumber and more. Analysts think that it is only a matter of time when the rates are raised. But do not expect it to happen with the announcement May 30.
After the current pause, which came after three rate increases, most economists are expecting the Bank of Canada will return to a hiking path in July, followed by one more increase at the end of the year.
“It’s all about the timing,” said Jean-Francois Perrault, chief economist at Bank of Nova Scotia in Toronto and a former central bank researcher. “From our perspective, rates are going up there’s no question about it, but it’s just when will they go up.”
As of late Friday, 21 of 24 economists predict Poloz will hold rates steady, with the rest calling for a quarter-point increase. Investors agree chances of an increase are slim; implied odds of a May 30 rate hike fell to 25 per cent last week, from 35 per cent about a month ago. An increase by July and another one by December are almost fully priced in.
The time would be now to buy that dream home before the rates go up, call Denise 250.981.4208
read more https://www.thestar.com/business/economy/2018/05/28/bank-of-canada-expected-to-refrain-from-rate-hike-until-july.html
