Source: The Canadian Press

Bank of Montreal predicts the slumping economy has put interest rates on hold, or moving lower, until at least until 2013.

In an interest rate outlook released Tuesday, the bank says it does not expect interest rate to rise again until the early part of 2013.

That’s about six months later than earlier forecasts that rates would stay flat until the fall of 2012.

Economist Michael Gregory says the weaker global economy has pushed down the prices of commodities and the Canadian dollar.

That means inflation is falling and the Bank of Canada is likely to delay any rate increases.

In fact, Gregory says, there is a good chance the central bank will cut rates over the next six months — by close to half a point.

That’s good news for homeowners with mortgages and consumers financing loans and lines of credit.