There are some indications that the steady increase in interest rates seen throughout 2022 may finally start leveling out.

Larry Short, Senior Investment Advisor with Short Financial, a branch of IA Private Wealth in St. John’s, says the bond market is one of the key indicators of where interest rates are likely to go.

The bond market is where governments, banks, and insurance companies go to borrow money and where mutual funds and pension funds lend money.

Short says long-term interest rates are lower than short-term interest rates.

While that’s not yet being reflected in GICs and mortgages, says Short, if the bond market is saying interest rates are going to be lower in the future, it means that the inflation we’ve seen in recent years will either dissipate, “or at least stop increasing.”