July 2017, when Canadian interest rates are expected to increase
This is just in from TD Economics, a .75% Prime rate increase is expected to be phased in – probably in 1/4% increases – starting in July 2017 and being fully in by December.
The rates they show below are for corporate rates, consumer rates are a bit higher.
Consumer prime is at 2.7% today so that would be the same increase of .75% taking it from 2.70 to 3.45% by the end of 2017.
OBSERVATION
• Our current forecast is for the Bank of Canada to begin raising interest rates in July of 2017, increasing the policy rate to 1.25% (from its current level of 0.5%) by the end of 2017. It is possible that with additional infrastructure-led growth the Bank may choose to begin hiking rates earlier and perhaps more aggressively.
All this and more from Calgary, Alberta top mortgage broker, Mark Herman.