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moneysense.ca, 12/07/05
Bank of Canada Rate Decision
The Bank of Canada decided to keep interest rates at 2.5% but has stated that rates will be going up “in the near term”. The loonie has soared recently against the greenback on expectations of such a hawkish stance from the bank, crossing the 83-cent mark today. The prime rate on which banks base the interest rate on personal loans will stay at 4.25% and a savings account with ING Direct will yield 2.4%
Note: I dropped into Shoppers Drug Mart today and noticed that they are also selling the next Harry Potter book starting midnight on July 16 at 40% off the list price. It is the best deal I’ve found so far.
moneysense.ca, 12/07/05
I’m not sure it’ll happen in September as well. High Canadian dollar already hurts export and rising prime will take this dollar higher which is bad for Canadadian economy (IMHO).
Alex: Looks like they are strongly hinting that rates are going up pretty soon. The economy seems to have adjusted to the rapid rise in the loonie fairly well. Job growth has been strong and though inflation is now low, the Bank seems to be looking further ahead for rising rates. In any case, what the bank decides to do in Sept is still a guess.
“However, in line with the Bank’s outlook, some reduction in the amount of monetary stimulus will be required in the near term to keep aggregate demand and supply in balance and inflation on target.”
[...] Up? Well that is the news we are hearing from many different sources including our friends at the Canadian Capitalist and for some of us that is not good news. The bank feels that INFLATION is on the horizon, which [...]