When Might We See Interest Rates Rise?
The governor publicly stated in October 2020 that interest rates would remain as is until we get out of the covid crisis. He did hint that we could see the economy improve enough in late 2022 enough so that he may increase the interest rates then.
Many economists believe this is very possible. However, many also think this may not last long given how fragile the economic recovery will be. We’ve seen the Bank of Canada rush to raise rates in the past only to backtrack and reverse that decision.
With record high home prices and equally as high average mortgage balances, the governor will need to be very careful not to push too hard too fast or we could see a domino effect…