It’s looking increasingly like interest rates won’t be heading higher anytime soon, according to experts. “From a consumer perspective, it looks like low interest rates are going to be here to stay for the next little while,” Mangaroo said.
“We remain comfortable with our forecast for interest rate hikes to be a long way off on the horizon, likely in the second half of 2015,” economists at TD Bank said Wednesday.
Whether they fall further will depend on the performance of the economy. A weakening economic picture could prompt the Bank of Canada to actually cut its rate to below 1 per cent again, but it also risks continuing a borrowing spree households can likely ill afford, experts say.