When will rates be going up???



Well, suffice to say my crystal ball is on the fritzÉbecause I did not see our most recent rate hike comingÉthere were no long term yield buzz or anything! It just sorta happened because the banks wanted to make more money. After all, a record breaking year (IN A RECESSION!!!) just isnÕt good enough. My favorite rant about banks is probably the Òconvenience feesÓ or the Òservice feesÓ Ð but thatÕs for another time. Check back often Ð when I get the time and energy to put that blog together Ð it will certainly be worth reading! But, to the point Ð When will rates be going up? This is a question I field almost daily Ð with SaturdayÕs and SundayÕs being the least of my Q&A timeÉuntil my 3 year old becomes market savvy Ð I am pretty sure I can dodge that bullet for a whileÉmind you my 6 year old is getting pretty darn smart! Today, once again, I have groundbreaking news Ð just for you! I am even going to give you an answer to another question Ð as a bonus (i am funny!)Éthat question is, ÒIf they do go up Ð by how much?Ó WhoÕs your buddy? According to the National Post (you all know how much of a fan I am of this ragÉbut, some people still think that what they do is fact finding journalismÉso here goes:) ÒGovernor Mark Carney made a ÔconditionalÕ promise to keep the benchmark interest rate at 0.25% through the end of June 2010. However, one way to keep to this expiry date and provide markets with a jolt would be an initial rate hike of 50 basis points on July 20, according to Bank of America Merrill Lynch economist Sheryl King.Ó Now, donÕt get your knickers in a twist. This is only 1 speculation about the proposed increase Ð I personally wouldnÕt be surprised if they raised the Prime rate by .25% next week (I think the 21st or 22nd is their next meeting date). But that looks to be premature and the most likely date for an increase is June 1st. With everyone speculating, itÕs like Prime Pop CornÉno one really knows when that kernel will actually pop! To read the full article, you can visit the following link: http://network.nationalpost.com/NP/blogs/tradingdesk/archive/2010/04/12/when-will-the-bank-of-canada-raise-interest-rates-and-by-how-much.aspx