On January 16th - I warned that rates may be ready to increase to the 5.25-75 range - and lo and behold - it has come to pass - interest rates for 5 year money is now 5.19-5.25%
the question now- what happens next - well let me gaze into the crystal ball again - the US Central Bankers - think there is a soft landing instore - which should lead to a higher stock market and perhaps higher interest rates - there are 2 weeks left until the end of the Canadian RRSP period for 2006 - if rates dont soften in early March - we may be on the march to higher rates - but remember - with current rates of 5% - it is unlikely interest rates could climb more than 1% as this would represent a 20% increase which would likely trigger a recession and force rates down....time will tell...stay tuned
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment