Rate Update

Bumpy week last week when it came to rates. As you may know, the Bank of Canada decided not to make any changes to the Overnight rate therefore the Prime Rate will stay at 2.25%
The Bank of Canada is planning on keeping the rate down until June 2010 however inflation and a strong Canadiann dollar may make it necessary to raise it beforehand. The simple determination of where rates are going is, when the economy is bad rates will be low(er), and when the economy is good, rates will be high(er).The Canadian economy and others around the world are showing good positive signs that the worse is behind us. We saw fixed rates go up last week and we may have more to come!