Bank of Canada to Increase Rates?

The nine member monetary policy council with the CD Howe institute consensus is that the the Bank of Canada should raise it's current overnight rate from 4.25% to 4.5% immediately. The reasons are straight as stated in a statement that they released: "Both headline and core inflation are running ahead of the bank's target,"

The core inflation rate which excludes items such as gasoline and fresh fruit and vegetables — hit a four-year high of 2.5 per cent in April.

Mortgage Rates have already begun to rise along with bond rates in anticipation of the next Bank of Canada meeting in July.