By Jamie Barrie F or those that borrow at variable rates, loan and mort- gages and those carrying credit card debt the fact that the Canadian inflation rates was higher than expected for core consumer prices in January is not a good sign for interest rates. Inflation rates in Canada were higher than expected for the fourth month and are highest consumers have seen in Canada since September of 2016. The upward trend shows that the Canadian economy continues to outper- form expectations in 2018 as it did in 2017 which is putting increased pressure on The Bank of Canada to increase bor- rowing rates. Some of the blame has been put on provincial wage rate increases and the impact that increased have had employ- ers and these costs now being passed on to consum- ers which effects inflation. However, The Bank of Canada are confident that inflation will stay at about 2 percent on average over the next two years. Market experts are predicting at least two more increas- es this year, in addition to the three times the rate was increased in July by the Bank of Canada to keep Canada on for its 2 percent target .
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SPOTLIGHT ON BUSINESS MAGAZINE • FEBRUARY 2018
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