Will rates go up early next year? - 12/21/09 12:33 PM
National Bank Financial has indicated the central bank might begin raising its target rate, at 0.25%, in early 2010, all the way to 1.5% by the end of next year. "Obviously, the difficult part of the Bank of Canada's exit strategy will be deciding when to raise the official rate and at what pace," said the NBF team, led by chief economist and strategist Stefane Marion. "Pressure to begin normalizing monetary policy before mid-2010 could well mount. In particular, sustained employment recovery would spell an end to the ultra-expansionist monetary policy ahead of plan."
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