True to his word Mark Carney and the Bank of Canada have not raised the overnight lending rate, and still maintain it will not increase until the middle if 2010.
Although consumers in Canada have been spending, propping up our economy, economists speculate that this will only last for a few quarters. What they would like to see is our trading partner's economies to get better so that Canadian exports increase, which would have a much more lasting and better effect on our overall economy.
One area consumers are spending is housing.
"Canadians are responding to the central bank's price signal and rushing to buy homes at what many see once-in-a-lifetime mortgage rates." Globe and Mail.
Bank Of Canada Press Release December 8, 2009
1 comment:
It is good that government has not increased its rate. For those who are investing in real estate market, this will be more beneficiary.
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