Bank of Canada won't raise interest rates til 2016

Waiting for the announcment later this month from The Bank of Canada on the interest rates, most economists are believing that it will remain at one percent, where it has been for the last three years, until late 2014 even into early 2015. Analysts from Scotiabank are even going further and speculating that the interest rate will not go up until 2016. Low interest rates are generally  seen as likely to boost economic perforamance because firms and individuals can more cheaply finance their investments and spending. But The Bank of Canada also warns that keeping rates too low for too long a period could be problematic for savers and pension funds and encourages households to spend beyond their means.