Agreed on the inadvertant fault , thanks Pramod ji for pointing that out. I should have said possible .25% increase whenever BOC sits instead of average 0.05 % increase every quarter.

Still going by history, for last 3 yrs, since Jan 2009, it is kept 3.00 or low,
there was time in history when it was kept below 2.0 for almost 12-15 yrs that was immediatly after slump of 30s.
I am not sure what will change drastically within this or next year to make it jump higher to 4% or above.

For that matter , fixed rates have plummeted very very recently (and that is why this discussion) , is that not an indication that variable rates will be also kept low for some times (read years) to come ? What are the indicators that it will go up ?

Thanks a lot all of you for valuable advice and suggestion.

I did my homework too and as mentioned by Pramodji, I have prime -0.6% means if BOC will increase rate by 0.5% from now to next one year than still i am on same place rather than switch now with fixed rate @ 2.89%..

what is your opinion that BOC is going to increased prime very soon, i mean within couple of month or still wait and watch until mid of this year?

If in worst case Israel and Iran is going to fight in mid of this year than again world economy will be going to screwed up big time....

And then don't forget about the 2012 doomsday....