Canadian Interest Rates to Move up Mid 2010?

With economic recovery firmly underway, an end to these fantastic interest rates may come sooner rather than later. Of course they will not shoot up rapidly overnight, however the trend is now flat and expected to be up and not down, going forward. For consumers who are trying to pick a term for their next financing this presents some important info to consider.

Check the following article from Reuters.

SUMMERSIDE, Prince Edward Island, Sept 23 (Reuters) - The Bank of Canada foresees higher interest rates following the expiry of its conditional pledge to hold them unchanged till the middle of 2010, Deputy Governor David Longworth said on Wednesday.

"Interest rates are low and consistent with our projection of inflation, one would expect there would be some movement up in interest rates following the end of June 2010, but anything to do with magnitude would depend on our future inflation projection," he said after a speech in Prince Edward Island.

It was the most explicit statement the central bank has made about what could happen after mid-2010. However, Longworth did not specify exactly when to expect a rate hike.