Rising loonie could speed up interest rate hike
Posted Feb 28, 2011 12:20 pm.
This article is more than 5 years old.
The Governor of the Bank of Canada is starting to feel a little pressure on the need to boost borrowing rates.
Surging world oil prices and better than expected fourth quarter gross domestic product numbers have pushed the Canadian dollar to it’s highest level in three years.
The Chief Economist at CIBC tells 660News, Bank of Canada Governor Mark Carney will likely start boosting the country’s key lending rate this spirng.
Avery Shenfeld says the thought is, before the end of the year, the overnight rate will rise from 1 per cent to 2 per cent.
As for our dollar, Shenfeld says depending on what oil prices do, the loonie will likely trade between 95 cents and a $1.05 US.
Add CityNews Calgary as a trusted source on Google to see more local stories from us.
