13 May 2019

Moreover, about 70% of them were reported in the sector of full-time employment.

The increase was seen in 8 out of 11 major sectors, including construction.

“Scotia Economics’ forecast of more hikes was supported by strong jobs report that is also in line with the outlook for consumption and housing,” – noted Holt.

In Holt’s opinion, the Scotiabank team was left alone when still keeping the hike expectations.  Paul Ashworth, chief North America economist for Capital Economics is on the opposite side of this discussion.

Although he admits the improvement of Canada’s economy since the fourth quarter, he predicts rate cuts in the future.

“We can’t be sure that the central bank’s hopes of a strong recovery later this year will come true, so the Bank of Canada may have to cut the rates”, – he said.

The current trade war between US and China may prove Ashworth’s opinion.

Our takeaway from all those rate predictions is very simple – anything could happen and shift economy into different direction, so living by predictions is a very dangerous path. Choose you mortgage rate based on your comfort level and on the professional advice from your mortgage broker or banker.