There are remarkable situations on both sides. The Bank of Canada rate is 0.5% and mortgages are extremely low. In addition, bank margins are extremely low, probably the lowest ever seen. The banks will be trying to restore their margins to normal levels. I'm convinced we'll see an economic recovery, but we'll have to wait until early next year.
The Federal Reserve, the Bank of Canada and the Bank of England will raise interest rates quickly, but they won't be 10%. The Bank of Canada's normal rate is probably between 3.5% and 4.5%. Those interest rates will have to go into effect as soon as possible. I don't think they will before mid-2010; they'll wait for the economy to recover. I'm worried about inflation, but, to avoid that problem, they'll have to start raising interest rates as soon as the economy is stronger.