Interest Rate Forecast- Sept. 2010

The economic slowdown is more evident with each passing month and the Bank of Canada looks to acknowledge it by holding its policy rate at 1.00% ruling out a fourth consecutive rate increase.

The economic slowdown lasts into 2011 and once better growth prospects emerge, the Bank resumes its rate normalization process. A rising but low interest rate environment in the next two years is foreseen with considerable swings in bond yields reflecting uncertainty and economic growth variability.

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 Interest_Rate_Forecast_September_2010.pdf