22°c Partly cloudy
18°c Cloudy periods
Winnipeg Free Press - PRINT EDITION
Bank of Montreal forecasts low interest rates to July 2013
TORONTO -- The Bank of Montreal predicted Tuesday that the Bank of Canada will keep interests rates lower for longer than it expected.
Economists at the bank now believe the central bank will not raise its key rate until July 2013, six months later than their earlier prediction of January 2013.
Senior economist Michael Gregory said the change stems from the easing policy of the U.S. Federal Reserve, a downgraded Canadian economic outlook and tightened mortgage rules.
The changes, which include a cut to the maximum amortization period for government-insured mortgages to 25 years from 30, should stem some fears around growing household debt that would otherwise push the Bank of Canada to increase rates sooner.
"The tightening of the government's mortgage-insurance rules does serve to act like higher interest rates specifically for that sector," Gregory said.
The Bank of Canada has kept its key interest rate at one per cent since September 2010. The rate affects the prime lending rates at Canada's major banks, which in turn influence other interest rates, including variable-rate mortgages and lines of credit.
Gregory said he expects Bank of Canada's projections for economic growth in its July 18 monetary policy report will show softer growth in Canada.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition July 4, 2012 B5
More Business
- Back to Top
- Return to Business
More Business
(1 of 50 articles for today)
China's Wanda buys luxury British yacht maker Sunseeker, to develop London hotel project
11:33 PM 0BEIJING, China - Chinese property and cinema conglomerate Dalian Wanda Group says it is buying British yacht maker Sunseeker and ...
Poll
Most Popular Business
- McMunn & Yates absorbs five McDiarmid locations
- Shark Club opens in citiplace
- Daycare-subsidy rules bad for business
- Magellan signs MOU to produce F-35 tails
- Carriers turned off by Canada's wireless law
- Local business incubator gets new name
- NY, Va. 7-Eleven stores raided as US accuses owners and managers of exploiting immigrants
- U.S. hedge fund increases its ownership stake in Tim Hortons to 5.5%
- Mountain Equipment Co-op unveils new logo, name to appeal to urban customers
- St. Vital Centre's energy savings help managers snag BOMA awards
- Sobeys expanding reach in Western Canada with Safeway acquisition
- McMunn & Yates absorbs five McDiarmid locations
- Shark Club opens in citiplace
- Aircraft maintenance engineer taking off
- Two CBC reporters freed after being detained in Turkey
- St. Vital Centre's energy savings help managers snag BOMA awards
- Toronto condo market poses economic risk to Canada
- Daycare-subsidy rules bad for business
- Fund helps entrepreneurs fly
- Canadian credit unions an eye-opener
- New owner for lumber stores
- Earls Pembina says goodbye after 18 years
- Sobeys expanding reach in Western Canada with Safeway acquisition
- Grove Pub to take over former home of Papa George's
- New rules let customers cancel phone contracts without penalty after two years
- McMunn & Yates absorbs five McDiarmid locations
- MTS to sell Allstream to Egyptian investment group, focus on Manitoba market
- Where is easy street? Survey of city's richest routes may surprise
- Custom-made suits no longer just for the ultra-wealthy
- Eateries brace for Blue blitz
- McMunn & Yates absorbs five McDiarmid locations
- Daycare-subsidy rules bad for business
- Warren Buffett -- Winnipeg-style
- Knights riding in with cash to spend
- Transcona transformation
- Target exceeds sales goal at Canadian stores
- The $2-million question
- Bombardier wins German locomotive rail order potentially worth US$2 billion
- Magellan signs MOU to produce F-35 tails
- CFIA suspends licence of Edmonton's Aliya's Foods Ltd. over inspection rules
- Sobeys expanding reach in Western Canada with Safeway acquisition
- McMunn & Yates absorbs five McDiarmid locations
- Toronto condo market poses economic risk to Canada
- Cutting edge, made-in-Manitoba tech finds buyer -- in Manitoba
- Google unveils Internet beaming balloons launched into stratosphere
- Warren Buffett -- Winnipeg-style
- Fund helps entrepreneurs fly
- St. Vital Centre's energy savings help managers snag BOMA awards
- Daycare-subsidy rules bad for business
- New owner for lumber stores
- New owner for lumber stores
- Snowbirds: It's that time of year again
- Sobeys expanding reach in Western Canada with Safeway acquisition
- Custom-made suits no longer just for the ultra-wealthy
- New rules let customers cancel phone contracts without penalty after two years
- Where is easy street? Survey of city's richest routes may surprise
- Value Partners cracks $1-B mark in assets
- MTS to sell Allstream to Egyptian investment group, focus on Manitoba market
- Manitoba Movers
- Grove Pub to take over former home of Papa George's
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.