Bank of Canada Urged to bump up rates...

Nonpartisan public policy think tank organization J.D.Howe Institute issued a press release this week from their Monetary Policy Council.

The policy group is largely made up of economist academics and bankers; who all recommended that interest rates should start to rise sharply, starting in July of this year.  Where the rate will end up is a decision the Federal Government and the Bank of Canada will have to make; but if the council has it's way, we will see an increase of 50 basis points in July (from .25% to .75%), and further increases every few months until mid-2011, to a target rate of 2%.

Once again, if you are interested in buying a home this year - I advise you to strongly consider buying before July!  Avoid the increased closing costs that will come with the HST implemenation, and avoid the risk of increased interest rates (which are almost certainly coming as well).