Economists predict the Bank of Canada’s interest rate could increase by 50 to 75 basis points by the end of next year, something they say will undoubtedly also raise Canadian mortgage rates.
that while its current policy rate remains steady at 0.25 per cent, it will likely increase as early as the second quarter of next year.“The variable rates will go up quite quickly, they could even go up in anticipation of the bank action,” Drummond told CTVNews.ca in a phone interview on Thursday.
Robert Hogue, a senior economist with the Royal Bank of Canada, predicts an increase of closer to 0.5 percentage points in the central bank’s interest rate by the end of next year, but sees a rise in variable mortgage rates nonetheless as a result. Fixed-rate mortgages are linked to bond yields, Hogue explained, which involve longer-term interest rates, and bond markets will anticipate future moves by central banks. He forecasts that the average rate of a five-year government of Canada bond yield will likely increase by 0.5 percentage points as well by the end of 2022.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sun Run back in 2022 as stadium capacity restrictions liftedIn 2019, 43,000 people participated in the run. Race registration peaked at 59,000 in 2008.
Read more »
G20 wants 70 per cent of world vaccinated by mid-2022, sets up pandemic task forceThe task force will explore options for mobilizing funds to boost pandemic preparedness, prevention and response
Read more »
Brazil Senate hands pandemic probe to top prosecutor, few expect Bolsonaro chargesA Brazilian Senate panel probing the government's pandemic response on Wednesday presented the prosecutor general's office with recommendations to criminally charge President Jair Bolsonaro for alleged errors that cost Brazilian lives.
Read more »
Rings on the Horizon: 100 days to go until the Beijing Winter OlympicsOpening ceremonies for the 2022 Beijing Olympics are 100 days out
Read more »