“Interest rates in Canada will remain stable in the near-term,” says CIBC’s Senior Economist Benjamin Tal, “with a real possibility of a rate cut in the coming months.”

Tal goes on to suggest that “being on the sideline (say by taking a variable rate mortgage) for the next few months is not a bad idea.”

He says, “The likelihood that both the prime rate and bond yields will rise during that period is low, and there is a real likelihood that they might be somewhat lower, either via a Bank of Canada rate cut or some easing in spreads.”

(Via:  FirstLine)