Rates rising on May 31st?

The strong Canadian Dollar has helped the Bank of Canada to keep interest rates on hold for quite some time now. But the central bank's latest quarterly forecast suggests that cushion provided by higher currency value can’t last forever. The central bank’s projections, released Wednesday, indicate that economy will grow at 2.9 per cent this year, half a point faster than it estimated in January. As well, the economy will return to full capacity in just over a year, six months earlier than previously thought. Bank’s projections also include an assumption that the loonie could trade above parity for years, and also reinforce the notion that interest rates will rise, even though that could boost the currency still higher. The bank's next scheduled date for an interest rate announcement is on May 31, 2011. If the Bank of Canada decides to increase the interst rate it should be only .25% and it is not expected to have a very negative impcat on Abbotsford Real Estate market.