BUSINESS REPORT: Higher interest rates ahead
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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