CIBC economist, Avery Shenfeld, proclaims: “Canada's inflation rate will be no threat to the Bank easily fulfilling its pledge to keep interest rates at a slim quarter point through mid-2010. In fact, market expectations for rate hikes in the first half of 2010 could be a full year too premature.”
Bank of America Securities-Merrill Lynch says it does not expect the Bank of Canada to begin raising rates until 2011.
National Bank economist, Marc Pinsonneault, believes mortgage rates won’t rise over the next 12 month by more than 50 to 75 basis points from today’s 5.85% five-year fixed posted rates.
On the housing front…
TD economist, Don Drummond, says: “A similar pattern in [the US and Canada] is unmistakably suggesting we’ve not only bottomed in housing, but we’re on the way back up.”
BMO Capital Markets economist, Jennifer Lee, agrees, saying: “The housing market has clearly turned the corner.”
As usual, long-range forecasts are fraught with hazards, so the above should be placed under the “For what it’s worth” heading…
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