Greg & Colin Thornton RE/MAX Sabre

Colin Direct: 604-561-3306 | EMAIL info@thethorntongroup.ca |

Categories

Bank of Canada won't raise interest rates until 2016

Could U.S. uncertainty mean low rates for years or even decades to come?

 

With the U.S. government deadlock heading toward a more damaging crisis and global economic growth falling far short of expectations, a hike in interest rates has been put on hold.

 

Most analysts see the bank keeping its policy rate at one per cent - where it's been for three years - until sometime late in 2014 or early 2015, but few believe it will stay at such stimulative level for another two or three years.

 

Low interest rates are generally seen as likely to boost economic performance because firms and individuals can more cheaply finance their investments and spending.

 

The Bank of Canada also warned that keeping rates low for too long a period is problematic for savers and pension funds, and encourages households to spend beyond their means.

Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.