Why Canadian Fixed and Variable Mortgage Rates May Be Heading in Different Directions

Last Tuesday Statistics Canada confirmed that our Consumer Price Index (CPI) declined from 3.4% in December to 2.9% in January (year-over-year). That result was well below both the consensus forecast of 3.3% and the Bank of Canada’s (BoC) most recent projection for Q1 (3.2%). Interestingly, that downside surprise in our CPI followed an upside surprise in the US CPI just…