Interest rates could rise July 12: Who are the winners and losers?
July 10 2017 Posted by Gurpartap (Gary) Bhutta
The Bank of Canada could raise interest rates as early as mid-July. Who would higher interest rates benefit and who would they hurt?
After holding interest rates at record low levels for the past two years, the Bank of Canada (BoC) has dropped a number of hints over the past few weeks that it is ready to finally start increasing rates. Some economists believe the first hike could happen as soon as July 12, the next time the BoC will review its interest rate target.
Other experts believe the bank will wait a little longer. Ontario-based financial planning company TriDelta Financial, for example, sees a rate increase happening later this year or early in 2018, Lorne Zeiler, vice-president at the firm told Global News.
The consensus, though, is that interest rates are heading up.
There is also broad agreement that the BoC will move rates slowly and gradually. At first, the bank will likely boost rates by increments of only 0.25 of a percentage point, said Zeiler.