Interest Rates to Rise

The Bank of Canada is widely expected to increase its interest rate at its meeting January 17. The expectation is based on strong business sentiment as captured in the Bank's Business Outlook research and the most recent employment figures, which showed unemployment at its lowest level in about 40 years and the creation of an estimated 80,000 jobs in December 2017. The US Federal Reserve Board is also expected to increase American interest rates in March, so the Canadian hike will anticipate that event. The Canadian dollar continues to hover around the 80 cent US mark as a result.