24 January 2014
“Of course, returning to the target range is good news, but the report doesn’t show necessary growth that could cause a tone shift at the Bank of Canada,” – noted Jimmy Jean from Desjardins.
This Wednesday, after lowering its forecasts, the BoC raised concerns about the low inflation again and said it would keep a close eye on prices. According to the new forecasts, the Bank expects inflation hitting 2% level only in two years. It means the Bank of Canada will have almost no reasons for raising its key lending rate through 2015.
And even if inflation gets back to 2%, the Bank would need more facts to start increasing rates.
In other words, the new report brings great news for variable mortgage borrowers.