21 March 2014

“Inflation is still too low. Nevertheless, we’re at least heading to the target level, and we may ease the discussion about the possible rate cuts. In addition to it, higher inflation provides the necessary support to the Canadian dollar,” – said Paul Ferley, RBC.

Earlier many economists expected the sharp price growth last February to skew the annual comparison. For example, the Bank of Canada Governor Stephen Poloz anticipated lower results because of this.

Government bond yields edged higher for the last few days, so might see disappearance of 2.99% 5 years fixed mortgage rate offer if the trend continues.