Governor Stephen Poloz and his Governing Council ended their deliberations on April 18th, and the end decision was not to raise interest rates. This has left the benchmark interest rate at 1.25% for now. However, they are unlikely to keep interest rates this low for long.  Contact your Calgary Mortgage Broker today to lock in your low interest rate.
The general consensus is that interest rates will be raised at the upcoming May meeting. If they keep rates at this same low rate in May, it is almost certain they’ll raise interest rates in July.  
Why is there so much certainty that the Bank of Canada will raise rates? The Central Bank released forecasts showing that inflation is above the 2% target set for the next few years. This means they’ll need to raise interest rates soon to keep prices from going up too fast. And they said they’d need to raise interest rates as soon as the data said it was warranted. The exact quote is: “This progress reinforces Governing Council’s view that higher interest rates will be warranted over time, although some monetary policy accommodation will still be needed to keep inflation on target.” 
Why didn’t the Bank of Canada raise rates at the April meeting? Poloz said that wages would have to be going up before they considered raising interest rates. Wages have been stagnant until recently, though they’re starting to inch up. If wages aren’t yet rising at a rate similar to prices, the Bank of Canada risks creating stagflation, a situation where employment is down while prices are still rising.  
Right now, domestic consumption is considered “robust” by policy makers. The Bank of Canada has said it thinks the economy can grow at 1.8% without triggering inflation, somewhat higher than the 1.4% initially cited. Demand for Canadian goods and services both domestically and internationally is thought to be strong for the foreseeable future. The expected outlook for the United States economy has been revised upward. Canadian GDP growth has been revised upward, too, from an earlier estimate of 1.6% to 2% for 2018 and 2.1% for 2019. If these numbers hold, then they’ll hit the threshold at which they said interest rates must rise.  
Suppose they raise interest rates. What happens next for Calgary? Policy makers have said they want to be cautious, and that means a slow, conservative approach. They can’t raise interest rates quickly, since this would hurt exporters who’d get priced out of the market. Exporters are already underwhelmed expectations, partially due to President Trump’s threats to dramatically alter the NAFTA treaty. Then there are the highly indebted households that couldn’t adapt to a spike in interest rates 
These concerns aside, Canada’s economy is in reasonable shape. If growth rates continue to remain strong or increase, then we’re almost certain to see a rate hike for Calgary. How much of a rate hike depends on how fast prices are going up, since officials have said they don’t know how aggressive they need to be to keep inflation in check. Governor Poloz has said that the need for monetary stimulus is diminishing but gradually, and that precludes jacking up interest rates like they were in the summer of 2017.  
Don’t hesitate to call Your Trusted Calgary Local Mortgage Broker to lock in at the all time LOW RATES!!!!