Most of Canada's economist and securities dealers expect interest rates to start to rise as early as May. While we have been preparing for an rise in the Bank of Canada rate in July, recent data has suggested that it will happen as soon as May, and possibly in April.
When inflation hits the 2% benchmark number the next move is to raise interest rates to slow down consumer spending. January's inflation numbers came in under expectations at 2.3%, but job creation was 4 times what was projected, putting pressure on the BoC to start to raise interest rates.
The one certainty is not if rates will rise but when.
The next bank of Canada rate announcement is March 1st 2011.
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