June 29, 2017 11:27 am
Updated: July 6, 2017 11:28 am

BUSINESS REPORT: Higher interest rates ahead

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Change in Canadian interest rates could begin in just two weeks. The odds are now up to two-thirds that the Bank of Canada will finally start to pull the pin on ultra-low rates.

On Wednesday Bank of Canada Governor Stephen Poloz all but guaranteed a rate hike on July 12, stating it does look as though those cuts have done their job to repair the economy.

Hardest hit by a rate hike will be holders of variable rate mortgages and home equity lines of credit.

With a rate hike in the offing, the biggest beneficiary so far has been the Canadian dollar, which along with broadly better economic conditions, has gained almost two and a half cents, from a low of 72.50 cents, in just over a month.

And if the economy continues to perform at these levels, a second rate hike could easily take place before the end of the year.

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