Thursday, June 14, 2007

Canadian Interest Rates On The Rise

Interest Rates Set To Heat Up As Loonie Soars This Summer
Canadians should expect interest rates to creep up this summer, in spite of the high-flying dollar. Bank of Canada Governor David Dodge said yesterday higher rates would come soon, but suggested the case for sustained rate increases is not so clear-cut, mainly because of the soaring loonie. Inflation and economic growth have both been stronger than the central bank anticipated, Mr. Dodge said, but at the same time the currency is also surprisingly robust.

Another Round Of Mortgage Rate Hikes
Mortgage rates are rising for the fourth time in four weeks as the cost of borrowed money increases. RBC Royal Bank and Bank of Montreal announced Wednesday they would be boosting their mortgage rates by up to a fifth of a percentage point. Other banks followed Thursday with hikes of their own. As of Friday, a five-year closed mortgage at all major banks will carry a posted rate of 7.44 per cent — an increase of 0.15 percentage points.

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