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Ultra-low interest rates expected until 2014

TORONTO, Ont. – Canadians can relax and enjoy those ultra-low interest rates for a while, after the latest economic forecast shows the Bank of Canada has plenty of reasons to hold the line on rates, meaning a hike may not occur until 2014.

Avery Shenfeld from CIBC World Markets told 680News emerging markets are on the boundary of a hard landing, while Europe is mired in recession. The U.S., meanwhile, is making an economic recovery, but it’s progressing at half speed.

As a result, the Canadian economy has grown at 2.1 per cent this year, and the same rate is expected for next year, slightly raising its already below-consensus call for 2012 world growth to 3 per cent – the slowest pace since the recession of 2008.