A rise in U.S. interest rates tomorrow is so confidently expected by nearly everyone that a failure to hike rates would shock world markets. One is through what is called imported inflation, something recently raised by Bank of America economists who warned about rising Canadian interest rates. Canadians who have bought houses recently could be less affected by rising interest rates because stress test rules mean they have the income to cover an increase. For all the central bank's purported independence, historically Canadian rates seldom stray far from those of the U.S. Until now, the majority view has been that there would be three rate increases in 2018.

Source: CBC News March 20, 2018 07:52 UTC