Interest rates to hit 1.75% by summer 2019
The latest forecast from CIBC Capital Markets is for Canadian interest rates to increase again in December this year.
In its forecast summary released this week, CIBC calls for a hold steady until then with the 1% rate coming in just before Christmas and holding until the summer of 2018 when a further 25 basis points rise will take rates to 1.25%.
If the forecast proves correct, interest rates will reach 1.50% by the end of next year and will be increased again by the summer of 2019 to 1.75%.
The summary also predicts that housing starts for 2017 will reach 201,000, beating the 198,000 of 2016 and 194,000 of 2015. For 2018, CIBC expects 187,000 new starts with 177,000 in 2019.
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