Bank of Canada hints at higher rates
The Bank of Canada left its main interest rate untouched at 1 per cent Tuesday, while painting a brighter economic outlook and hinting for the first time since last summer that it is beginning to look for an opportunity to raise borrowing costs.
The Bank of Canada has not given a firm timeline for a possible rate increase, but Governor Mark Carney seems to be preparing Canadians for this possible outcome. The decision to raise interest rates will ultimately depend on economic improvements, about which Mr. Carney seems confident, raising his growth forecast for 2012 to 2.4%.
With a new projected timeline for economic improvement and Mr. Carney's new growth forecasts, it seems possible that interest rates may see an increase before the end of 2012. That said, it is also believed that any restrictions regarding household debt will be gradual.
The Bank of Canada will release a full statement on Wednesday, April 18th and Mark Carney will join Senior Deputy Governor Tiff Macklem at a press conference to discuss these issues further.
Read the full article from The Globe and Mail here.