When Will the BoC Raise the Rates?

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By Elli Davis, January 15, 2011

Photo by Veronique Debord Lazaro

The Bank of Canada is going to raise the interest rates in the first half of 2011! This is the opinion of the majority of Canada's primary securities dealers, the results of a recent Reuters poll show. It will not happen on January 18, as most of them predict.

The poll was conducted after the recent extremely positive employment news on 12 institutions working closely with the Bank of Canada. Seven of them believe the interest rate is going to increase during the first six months of this year - three are convinced it will be on March 1, two think it will be on April 12 and another two expect the raise to happen on May 31.

I have to agree with the vast majority (11 out of 12) - I don't think the bank is going to raise the rate in January either, although I am not brave enough to guess the date. It will all depend on the future economic situation and that is really unpredictable sometimes.