Canada’s Central Bank Expected To Keep Interest Rates Low

16 April 2012 09:30am - Florence Fullalove

Email Article Print Article

Canada’s Central Bank Expected To Keep Interest Rates Low

The Bank of Canada is expected to keep its lending rate at 1% where it has been since September 2010. Economists widely predict that the central bank’s governor, Mark Carney will hold back from raising borrowing costs. They also forecast that it could be many more months before the Bank moves off from 1%, especially with the US rate likely on hold until 2014 which has increased concerns that further widening the gap in the cost of money between the two countries will have serious implications for the Canadian dollar. Caney recently said that Canadians have never been so indebted. His major concern was a shock to house prices or higher rates that would reduce household assets and increase financing charges, leaving little in consumers’ pockets for purchases that stimulate the economy. Carney acknowledges that he was prepared to intervene in an emergency but he also noted that more direct policy actions, such as a further tightening of mortgage rules would be more effective.

Douglas Porter of BMO Capital Markets said “The central banks are very concerned about the household debt situation and the strength of the housing market, and the overall stability of domestic spending, and it just isn’t consistent with an overnight rate below inflation.” He also added, “But unfortunately they face this eternal tension of a healthy domestic economy and a shaky external environment.”


Related Links:
• Bank of Canada
Canada's Central Bank
• BMO Capital Markets
• Latest News
Regular News Updates


Compare Foreign Exchange and Currency >>

Compare Loan and Debt Products >>

Compare Cards Products >>

Compare Money Products >>

Pet Insurance. Most family's have that loved pet in there life , lets make sure they are insured .
31 August 2018
Which Way To Pay
Pet Insurance is something that not everyone is aware of and how it can save you thousands of Dollars.
Personal Loan Rates Set to Rise in recent study published
31 August 2018
Which Way To Pay
Recent studies have shown a rising increase on rates attached to Personal Loans.
Avoid the middle man when wanting to lend some extra funds.
04 April 2017
Which Way To Pay
Peer to peer lending is one of the best ways to lend money as your are basically cutting out the middle man.