Friday, March 19, 2010

Signals that rates are rising in July ?

CPI numbers out this morning, and they are higher than expected, this could put pressure on Bank of Canada to raise rates.  Their message has remained steadfast that rates will be held at their current points until July 2010 (end of the second quarter).  I would suggest contacting your financing representative to discuss their vision of future rate increases.

Some of this upward momentum is attributed to the Olympics.  The remaining upward movement is due to gasoline price increases.  With HST, gasoline is predicted to crest $1 per liter.
 
In Ontario, prices rose 1.8%. This was due primarily to higher prices for gasoline, passenger vehicle insurance, and the purchase of passenger vehicles. Downward pressure came mainly from the shelter and clothing and footwear indexes.

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