Canadian Personal Finance Blog

Personal Finances and Consumer Concerns, essays, stories, examples and how to articles with a distinctly Canadian Point of View
February 25th, 2010

Harder Faster

Harder Faster

That is actually one of my favorite April Wine albums, but unfortunately it is also the message the C.D. Howe Institute is pushing for Interest Rate increases this year in their report How Soon? How Fast? Interest Rates and Other Monetary Policy Decisions in 2010.

The report itself is a very interesting read on how and why things have happened in terms of credit and interest rates, however, there is a nasty little recommendation that is in it:

When the overnight rate does begin to rise, the changes must be as aggressive as the rate cuts of 2008 and 2009 with increases of 50 basis points at every announcement date until mid-2011 not seeming unrealistic.

Remember how quick and dramatic the rate cuts were last year? There may be an equal and opposite reaction in terms of speed and rate increase this summer and into 2011, which will cause a tightening of credit and tumult in the bond markets too.

Were you planning on renewing your mortgage, or getting a new one? Might be time to lock into whatever rate you can find now, if you need to, since it seems we are in for a bumpier ride in the interest rate world.

And The Winners Are

Yes there were 10′s of entrants to get the free copies of Quicktax, and the winners are:

      • 2Hirondelles, who was selected by my son from my lucky Pittsburgh Steelers hat.
      • JohnnyG, who was selected by my wife from that same lucky hat!

I will be contacting you via e-mail on how you would like to receive your free software. Congrats to all entrants.

There will be more giveaways soon (as soon as someone gives me more stuff to give away).

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Posted in Bank, Bank Rates, Bank of Canada, Inflation, Interest Rates |

This entry was posted on Thursday, February 25th, 2010 at 1:08 AM and is filed under Bank, Bank Rates, Bank of Canada, Inflation, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Harder Faster”

  1. Johnny G Says:
    February 25th, 2010 at 2:06 PM

    Johnny G says “Thanks C8j!”…

  2. 20 Cents from February 2010 | Balance Junkie Says:
    March 1st, 2010 at 5:46 AM

    [...] Big Cajun Man at Canadian Personal Finance Blog posted Harder Faster. Who else could connect a great Canadian band like April Wine with a C.D. Howe report on raising [...]

  3. Canadian Personal Finance Blog » Blog Archive » Bank of Canada: No Rate Hikes (yet) Says:
    March 3rd, 2010 at 1:51 AM

    [...] for a little while longer. Rememmber that the C.D. Howe institute last week urged the bank to go Harder, Faster with their rate increases, but the bank is holding off for [...]

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