Interest Rates 
There are currently 26 blog entries related to this category.
More Cheap Money - Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1% for the eleventh consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
The Bank of Canada announced:
• The global economy has deteriorated and uncertainty has increased. The recession in Europe is now expected to be deeper and longer than expected.
• Very favourable financing conditions are expected to buttress consumer spending and housing activities.
• The economy is expected to return to full capacity by the third quarter of 2013.
They are not expecting to increase their prime lending rate at this time.
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1% for the tenth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
Uncertainty around the global economic outlook has increased. The recession in Europe is worse than they anticipated.
US growth was slightly more robust than anticipated however the European crisis is expected to weigh on US growth.
Canadian dollar is still strong and the weaker external outlook is expected to dampen GDP growth in Canada.
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1% for the eighth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
The global economic outlook has deteriorated in recent weeks as several downside risks to the projection in the Banks July Monetary Policy Report (MPR) have been realized. The European sovereign debt crisis has intensified, a broad range of data has signalled slower global growth, and financial market volatility has increased sharply. Recent benchmark revisions show that the U.S. recession was deeper and its recovery has been shallower than previously reported. In combination with recent economic data, this implies that U.S. growth will be weaker than previously anticipated. The Bank expects that American…
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1%. Banks therefore are expected to keep their prime rates at 3%.
The Bank of Canada's key points:
"Global economic recovery is proceesing at a somewhat faster pace than anticipated".
"Stretched household balance sheets are expected to restrain the pace of consumption growth and residential investment."
"With a little more excesss supply in the near term, that Bank continues to expect that the economy will return to full capacity by the end of 2012."
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1%. Banks therefore are expected to keep their prime rates at 3%.
The Bank of Canada said the global recovery is unfolding as expected but there has been an increase in risk due to the sovereign debts concerns in several countries that could trigger renewed strains in global financial markets.
"Canada's recovery is proceeding at a moderate pace. In the third quarter, household spending was stronger than the Bank had anticipated and growth in business investment was robust. However, net exports were weaker than projected and continued to exert a significant drag on growth. This underlines a previously-identified risk that a combination of disappointing productivity performance and persistent strength in the…
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1%. Banks therefore are expected to keep their prime rates at 3%.
The Bank of Canada said that interest rate hikes are on hold until at least the spring and maybe as long as late 2011.
The reasoning behind their decision is the weaker than projected recovery in the US, a slower than expected recovery globally and domestic considerations are expected to slow consumption and housing activities in Canada. The inflation in Canada has been slightly below their projection
Bank of Canada increases rate
The Bank of Canada increased their key lending rate by 0.25% to 1%. Banks therefore are expected to raise their prime rates to 3%.
The Bank of Canada said consumption growth is expected to remain solid and business investment to rise strongly.
The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected. "Financial conditions in Canada have tightened modestly but remain exceptionally stimulated."
Bank of Canada Increases Rate
The Bank of Canada increased their key lending rate by 0.25 percent to 0.75 percent. Banks therefore are expected to raise their prime rates to 2.75%.
The Bank of Canada has emphasized in this announcement that global recovery is happening, but it is shaky and needs time to take hold. In Canada, domestic demand by consumers is high and jobs are on the rise but business and investment earnings have been slow to recover.
The Bank of Canada is now expecting a slower than projected recovery in Canada than announced in their April Report. Inflation is in line with their targets of 2% but they have extended expectations of a full recovery by two quarters due to current trends and performance.
Canadians Struggle With Housing Costs
Mortgage rates are climbing for Canadian home owners but experts say that we are very unlikely to have a foreclosure wave like the one that has been taking place in the United States.
Previous mortgage levels were low enough that many Canadians bought into a housing market that they can barely afford now; increased rates have resulted in many home owners paying more than 40% of their monthly income into keeping a roof over their heads, reducing the amount of money that they can spend on savings, health, and nutrition.
What has worked in the past to get more Canadians into home ownership—like low interest rates and small required down payments—has also worked to cause problems for many of those home owners now that interest rates have risen. Our modern…
Variable Interest Rates are Heading Up - The first time in many years!
The Bank of Canada increased their key lending rate by 0.25 percent to 0.5 percent. This is the first time they raised rates in nearly 3 years. Banks therefore are expected to raise their prime rates to 2.50%.
The Bank of Canada's key lending rate held strong at 0.25% for 13 months, since April 2009.
The Bank of Canada increased their rate to re-establish normal functioning of the overnight market.
"The spillover into Canada from events in Europe has been limited to a modest fall in commodity prices and some tightening of financial conditions."
"Acitvity in Canada is unfolding largely as expected. The economy grew by a robust 6.1% in the first quarter, led by housing and consumer spending. Employment growth has resumed."
"CPI inflation has been in line…
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Last updated on: 2012-02-10 00:18:44
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