Economic and Rates Forecast
The latest edition of RBC Economics Research’s “Financial Markets Monthly” with our updated financial market forecasts was just released last week. Some good news on the interest rate front. The key lending rate for Canada is now forecasted to move up by 1/2 percent by the end of next year. Previously it was a full 1%. When the Bank of Canada moves their key lending rate lending institutions usually follow. This movement will affect anyone in a variable rate mortgage, loan or line of credit. Fixed mortgage rates usually move up before this if there is any anticipation in the market for the key lending rate to move up in the near future.
For more details on the rates see page 5 of the attached report along with the economic forecasts for Canada, U.S., Europe and the World.
Tony Marchigiano | Mortgage Specialist - Mortgage Sales BC Region, RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109 | F. 778-737-0054
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Link to “Financial Markets Monthly”
To view and download the new report, click on the following link:
Use the link below for quick access to the interest rate and exchange rate forecast detail table.
Highlights from this month's Financial Markets Monthly:
The US election resulted in little change to the make-up of the decision-making bodies of the government.
US data suggest that momentum was building though the effect of Hurricane Sandy will likely weigh on growth in the near term.
The Fed is waiting for acceleration in growth and improvement in labour markets to take hold.
The Canadian economy hit a weak patch in Q3/12 that is expected to be short lived.
The Bank of Canada kept policy unchanged in October while maintaining that there is scope for stimulus to be reduced in time.