Rates steady?

The Bank of Canada has made it’s clearest statement yet, that the Bank of Canada Rates will be increasing, most likely on the next announcement Jun 1.  Fixed rates have jumped up recently up to .75% higher than their all time low.  Although the commentary is very positive to the the Canadian economy, there are some factors which Carney points out could have a drag on our economy and therefore rates.  He points out that the strength of the Canadian dollar, low gains in labour productivity and weak demand from a US market will act on drags on the economy.  Inflation is at the point where he needs to do something, the question in coming months will be, “How far will they go?”