In the last meeting, the Bank of Canada announced that rates will remain steady. The global recovery continues to maintain momentum, but the strong loonie remains a very real headwind for the Canadian economy.
Most economists continue to look at the July meeting as the first real opportunity for the Bank to increase rates given the current financial situation around the world.
My sense is that rates will be higher a year from now, but questions continue around the timing and the severity of the increase. For now, enjoy your rate for the next little while and celebrate all those extra dollars going directly to your principal paydown!
Upcoming Bank of Canada Meetings To Review Rate- 2011