The Bank of Canada said the path of interest rates would be determined by its ongoing assessment of the data. The main changes to the outlook result from developments in oil markets.”In January 2015, the Bank of Canada cut interest rates as oil prices tumbled. They also explain why household spending and real-estate investment have slowed more than the central bank anticipated, but only partially. The central bank indicated that the combination of higher interest rates and stricter mortgage rules could be squeezing demand by a greater degree than expected. If it’s the latter, the central bank could be persuaded to delay its next interest-rate increase, as it would suggest that Canada’s indebted households are extra-sensitive to higher borrowing costs.

Source: National Post January 09, 2019 15:07 UTC