20 april 2010

More attention should be paid to the Bank’s written statement: “Recent improvements in the economic outlook show no more necessity in such extraordinary policy, that’s why it’s time to start reducing the degree of monetary stimulus”.
In other words, the BoC is going to raise rates. Analysts say, it might happen either on June 1 or July 20.  
“It is an absolute 100% certainty the Bank will raise by July,” says TD economist, Craig Alexander.
The 5-year government bond yield (which influences 5-year fixed mortgage rates) is up for 13. The 1-year bond – for 14 bps!
The BoC also “expects the economy to return to full capacity in the second quarter of 2011.” (It’s a quarter sooner than its previous forecast).
The BoC’s next interest rate meeting is June 1.

Leave a Reply

Your email address will not be published.