By John DePutter and Dave Milne – March 6, 2017
The news: No change for Canada’s Bank Rate
Citing continued uncertainty and concern over the state of the domestic economy, last week the Bank of Canada maintained its overnight rate at 0.5%, where it has been since summer, 2015.
“While there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the US,” the Bank said.
—From multi-media sources.
By Ranulf Glanville – July 7, 2016
Right now central banks around the world are taking unprecedented measures to keep interest rates pinned near zero. In fact, in many parts of the world interest rates are now negative!
We don’t see indications sharply higher interest rates are imminent. Still, we urge all readers to consider what could cause either short- or long-term interest rates to turn higher. Decisions involving debt need to consider not just the current situation, but also scenarios for what may lie ahead.
Below are a few things to think about when assuming interest rates will stay low for years and years.