Where Is The Prime Rate Going?

Over the last few weeks we have been seeing news articles about where the interest rates are heading.

Last week the Big 5 have released their forecast reports with predictions all the way to the end of 2011:

  • BMO: +3.00%
  • CIBC: +2.25%
  • Scotia: +2.75%
  • TD: +3.00%
  • RBC: +3.25%

First increase is expected on July 20, 2010.

The next BOC announcement is on April 20,2010 which will give us a better idea of what to expect.

We saw the rate drop in 18 month from 6.25% to 2.25% in 18 month when the recession started, could the rates go back up just as fast with all the talk about inflationary pressure?

Full Story from Canadian Mortgage Trends