Since raising its overnight lending rate to one per cent in September, the bank has held steady for five consecutive policy decisions.
The Bank of Canada said economic growth in the United States appears to be picking up steam, while emerging markets continue to expand at a robust pace.
"Although this stronger growth is not expected to result in an immediate hike in interest rates, the acknowledgement of such will solidify financial market expectations for the return to tightening later this summer," wrote Paul Ferley, assistant chief economist at RBC Economics.
Paul Ferley spoke earlier this year at the Coldwell Banker Economic Forum in Kitchener.
RBC predicts that the Bank's overnight rate will rise from the current level of one per cent to three per cent by 2012.
The Bank of Canada said economic growth in the United States appears to be picking up steam, while emerging markets continue to expand at a robust pace.
Summer tightening
Still, analysts believe that the Bank of Canada should be ready to pull the interest rate trigger as the year progresses."Although this stronger growth is not expected to result in an immediate hike in interest rates, the acknowledgement of such will solidify financial market expectations for the return to tightening later this summer," wrote Paul Ferley, assistant chief economist at RBC Economics.
Paul Ferley spoke earlier this year at the Coldwell Banker Economic Forum in Kitchener.
RBC predicts that the Bank's overnight rate will rise from the current level of one per cent to three per cent by 2012.
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