Bank of Canada Governor Mark Carney held his benchmark interest rate steady at 1 per cent Tuesday, pointing to ongoing global threats and the dampening effect of the strong Canadian dollar on exports, but signalled that he’s also watching closely for an opportunity to begin tightening monetary policy.For me, these means two things. One, I expect more mortgage tightening. Two, Canada might be looking at low interest rates for a few years. You might expect this would keep house prices high, but it doesn't. In the medium and long term, this is very detrimental to the economy and housing. Some say Canada may experience Japan like interest rates for a decade or so. If that is the case, then expect Japan like housing price losses. I will be writing a post about this in a couple of days.
Tuesday, May 31, 2011
Bank of Canada holds rates steady
Globe and Mail reported that Mark Carney holds rates steady, for now