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Mortgage Broker News | 13 Jan 2011, 09:00 AM Agree 0
The Bank of Canada will likely increase interest rates by 1.5 percentage points because of anticipated inflation later this year, according to Sheryl King, chief investment strategist for Merrill Lynch Canada.
  • KL | 14 Jan 2011, 06:36 AM Agree 0
    Perhaps this young lady at Merrill Lynch should talk to Benjamin Tal. Just 6 weeks his world market and Canadian predictions were no where near this level. BT has been right on for the past 10 years - what would make this any diff today ???
  • CK | 14 Jan 2011, 09:00 AM Agree 0
    Merrill Lynch is once again out to lunch on this one as well. They were also the ones predicting home prices in certain parts of the country to crash by 50%, specific cities like Saskatoon was overpriced by double...instead it continues to be a leading market and prices remain steady even rise and Winnipeg is in for a boom. Whats with ML and their 50% rate increases and/or market price collapses by 50%...all doom and gloom pictures with no shred of stats to back it up.
  • padarzoli | 14 Jan 2011, 11:10 AM Agree 0
    Lenders are competing as it is, all slow getting in business another rate increase will slow purchase even further, pushing out many buyers... it works as it is, gradual increase OK but 1.5% are they insane? I know it is just one of them think thank predictions, but bad news always has merit to…
  • B Brodie | 07 Feb 2011, 07:37 PM Agree 0
    Where do these economists get their wild ass guesses? The BOC's hands are tied and is unlikely to move rates up until the Federal Reserve moves. Otherwise exports will be throttled. In general, BOC and the Federal Reserve don't really care about the core inflation figures, what they really care about is wage inflation. The only way BOC will raise rates is if they see wage expectations are rising. It used to be that wage expectations were correlated to core inflation, but ever since we threw out ever manufacturing job in Canada, this is no longer the case and core inflation is nonsense that central banks in US and Canada could care less about.

    If employment numbers really start to pick up speed, we may see a 50 point rise BOC rates this year. Otherwise, wait for the Fed to move in 2013.
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