The nine member monetary policy council with the CD Howe institute consensus is that the the Bank of Canada should raise it's current overnight rate from 4.25% to 4.5% immediately. The reasons are straight as stated in a statement that they released: "Both headline and core inflation are running ahead of the bank's target,"
The core inflation rate which excludes items such as gasoline and fresh fruit and vegetables — hit a four-year high of 2.5 per cent in April.
It's been a full year since the Bank of Canada has raised rates. Bank of Canada hasn't gone a full year without raising rates since 1973. Analyst expect the Bank of Canada to be much more aggressive in the year to come.
Mortgage Rates have already begun to rise along with bond rates in anticipation of the next Bank of Canada meeting in July.
Bottom line: Expect to mortgage rates to rise in the next few months.
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