INTEREST RATES: Almost "inevitable" interest rates will rise: Bank of Canada deputy govenor

The pace of Bank of Canada rate moves remains uncertain, but it is "almost inevitable" that interest rates will rise over time, outgoing Deputy Governor Pierre Duguay, right, said yesterday. The central bank's Monetary Policy Report last week stated explicitly for the first time that its outlook assumes "a gradual reduction in monetary stimulus consistent with achieving the inflation target." At the same time, the bank also ratcheted down domestic growth forecasts. "It sets the general profile," Mr. Duguay said in an interview to mark his retirement from the bank on July 29, the week after interest rates rose for a second time in two months.

(Source: Reuters/National Post)