The inflation rate just hit at new high of 3.7%. Government likes to see the infation rate at no more than 2 % before any action is taken, by way of increasing interest rates, to curb spending. Current circumstances with the Pandemic, has crippled our Economic growth. Not just in Canada- Globally! People right now are holding on to their money, in fear of no income later. The runaway Real Estate Market, is actually the main area, people are putting their money on the line, while taking out huge mortgages to finance their purchase. The Government has been helping out individuals and Buisnesses, and will continue to do so up to October 2021. This assistance has been artificially propping up the Economy, putting money into peoples pockets, so they will spend and has kept some Companies alive. Not all have survived. Possibly the rates might go up, a little, to slow down spending. Any significant increases would hurt those having to refinance their mortgages, keep people out of the housing market as they wouldn't qualify for mortgages and hurt companies who have had to borrow money at a higher rate of interest . The also is an Federal Election in September. Raising interest rates now would not be a smart move for Trudeau and the Liberals!
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