Over the past few months, major economists have backpeddled on their rate hike predictions. Initially the rates were expected to start to rise as early as July, however most economists are now saying it could be as late as the new year. Major factors include:
- A parade of weak economic data from the U.S.—our key trading partner
- Core inflation that remains manageable
- Global economic risks
- Debt-laden consumers that are only cautiously spending
- A U.S. housing market that's double-dipping
- U.S. unemployment that may be structurally and permanently elevated
- A Canadian dollar that is still acting as a brake on our economy.
