2 March 2011
National Bank: “In our opinion, the next rate hike will occur at the May 31 interest-rate meeting”.
RBC: “It’s obvious that the Bank won’t keep interest rates unchanged if the economy continues to rise… That’s why we expect the next rate hike in May 2011. Overall increase for 2011 might be 100bps or 1%”.
Scotiabank: “…According to our latest forecasts, the next rate increase may happen in October, and not sooner”.
TD: “It looks like the markets will change their forecasts after today’s statement, so the next hike in July still seems to be the fairest bet”.
These forecasts concern the overnight rate, which affects the prime rate. And the prime rate is the basis for variable mortgage rates.
Of course, it’s always necessary to remember that mortgage rate predictions can change in time depending on different market tendencies.