Will the BoC Keep the Rates Low?

Bank of Canada is meeting tomorrow (April 20, 2010) to announce the benchmark rate, currently at 0.25%. While there is no expected change in the rate during this meeting, the industry is looking for Central Bank Governor Mark Carney to signal whether or not the conditional emergency rate that was set when the economic crises started will actually stay in place until July 20, or increase as soon as June 1.

While there are predictions that June 1 will be most likely the first rate hike due to inflationary pressure – BoC might keep the rate at 0.25% until July as the concern for inflation is offset by new mortgage rules that are suppose to cool the hot real estate market and the Canadian currency near par with USD lowering the price of imports.

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