Governor Carney said yesterday that “given current material headwinds, the policy rate can return to its long-run level after inflation is projected to reach the 2 per cent target and output is projected to reach its potential”, highlighting the lack of urgency to tighten. The Bottom Line: Despite the upside surprise to core inflation, the Bank of Canada appears in no rush to tighten given the economic and financial market headwinds that are currently blowing. Low rate environment is here to stay for now. On the downside, low rates mean increase speculation and rising home prices. If you want to take advantage of these low rates and renew your mortgage early contact me to find out how much you can save.
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