They up-graded their growth forecasts and are of course fearful of the huge amount of debt Canadian have taken on and the Real Estate bubble - so they are moving into rate hiking mode.
The only thing holding them back is the high Canadian Dollar which is damaging Ontario's manufacturing sector.
So when will they do this?
Probably not until late 2012 or 2013 and even then it will be a tiny move up from the current 1%. (with inflation running at 2-3x that)
Huh? So why all the hullabaloo now. Just do it! The result of these words is that the CAD has soared again, but rates for borrowers have remained rock solid.
This is the exact opposite of what they say they want. Now manufacturing gets hit but debtors have a free pass.
Why do we keep doing things that are the opposite of our intentions? The CMHC of course being the prime example. Say one thing but do the opposite.
