Interest rates predicted to rise later this year in Canada
James Daw notes the economic fundamentals including large scale government borrowing imply pressure on interest rates. The TD Bank forecast that Canadian short term interest rates will increase by up to 3% between this summer and end of 2011. This would make the option of locking in at fixed rates a good opportunity for many people to consider.
Canadian households should be cautious as government debt levels soar | Toronto Star – James Daw
"One of the most remarkable things in this recession has been the willingness of Canadian households to take on more debt, even at a time when the labour market was weakening and unemployment was rising," said Alexander.
Statistics Canada reported Monday that Canadian households added $62 billion in debt last year, or about $1,400 per person. We did end up better off. Rising home prices and stock markets offset the first annual decline in household assets on record in 2008.
"Now the question becomes: What happens when interest rates start to rise in Canada?" said Alexander.
