Long-termΒ mortgageΒ rates to rise soon, Stephen Poloz says

Bank of Canada governor Stephen Poloz says he expects long-term interest rates to rise this summer as the U.S. Federal Reserve continues tapering, but he believes that would be a positive development.
Poloz, who was namedΒ Canadaβs top central banker in May, said he believes that the U.S. Fed willΒ continue to taper its bond-buying program throughout the yearΒ and that will create market pressure on bond yields.
βIn the context of a firming global economy, especially the U.S., we’d expect to see some upward pressure in market interest rates, long-term rates in particular, where the quantitative easing has its primary effect,β Poloz said in an interview with Amanda Lang onΒ CBCβsΒ The Lang & OβLeary Exchange.
βSo as a tapering occurs we might expect to see as we saw in the summer some increases in long-term rates, most of it seems to be priced in,β Poloz addedΒ … More
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