The BOC is holding interest rates at a record low .25% for now, but hinting that may change soon. BC is doing some belt tightening now that the games are over, but in the rest of Canada the economy is growing surprisingly fast. So when do rates start going back up, and how fast should they be raised to reign in inflation?
The C.D. Howe institute is recommending that they be raised sharply for every rate announcement for the year after their conditional July commitment. This would mean the overnight rate would move from its current .25% to 2.0% at the end of 2011.