According to David Dodge, Governor of the Bank of Canada, the rising value of the Canadian dollar against the U.S. greenback and increased risk of inflation puts mounting pressure on The Bank to raise interest rates. Mr. Dodge also says that the growing number of baby-boomers leaving the workforce will have a negative impact on the economy's ability to grow without inflation becoming unmanageable. He has suggested that interest rates in the near future will need to increase to control this economic situation.

Of course, The big Canadian banks are not waiting and have increased some of their mortgage rates by 1/5 of 1%, the highest levels in 5 years. As consumers we will have to wait and watch as this is out of our hands.

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