BANK OF CANADA expected to clarity interest rate intentions
April 19, 2010
The Bank of Canada is not expected to raise interest rates at its scheduled announcement tomorrow, but it might provide clarity on its intentions on whether it will act earlier than previously planned. The central bank's overnight lending rate has been set at a record-low 0.25% since last April. THERE AFTER the numbers on GDP, employment and inflation are expected to increase. The next two chances to raise rates after tomorrow are June 1 and July 20. The consensus among economists is for annual inflation remaining at 1.6%, unchanged from February, and the core rate -- excluding volatile items like energy and certain foods --to ease to 1.9%from 2.1%.
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FROM the recent news on april 20th, the bank of canada signals that there are probaility of the interest rates climbing up the top, as its weeks away as the dollar soars,the the likleyhood of borrowing costs to climb as a result,some mortgage leding banks have seen hicked the interest rates to a high of 0.85 percent, and the overnight borrowing rates at 0.25 percent.The prime rates are more likely to be affected mostly include variable-rate mortgages, lines of credit and short-term car loans.The overall prices of the gasoline are expected to hike which is direcly related to the commodity prices,hence we expect to see a decline in demand and supply.
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