On Wednesday the Bank of Canada decided that the Canadian Economy is still in need of stimulus, so there was no change in the key overnight rate (which remains at 3/4% for now). The decision is nicely summed up in the final paragraph of the short statement:
Although a number of complex adjustments are under way, the Bank’s assessment of risks to the inflation profile has not materially changed. Risks to financial stability remain elevated, but appear to be evolving as expected. Weighing all of these risks, the Bank judges that the current degree of monetary policy stimulus remains appropriate and therefore the target for the overnight rate remains at 3/4 per cent.
It seems like the Canadian economy is like our kids, hooked on a high sugar (stimulant) diet. There is a statement about the “Bond Backup” so again, we shall see where this all might lead.
As of next Wednesday (June 3rd) the new CRTC guidelines in terms of contract length will be law. This means folks (like me) who signed any contract before June 3rd 2013, can walk away from the contract with no penalties (no penalties are allowed after 24 months of the contract), so there may be a whole bunch of great new deals coming up in the near future.
How much is this great new plan for Sick Leave for Civil Servants going to cost? We may never know, since the Feds don’t seem obliged to publish the price points for their new plans. Yes, the abolition of the current system is going to allegedly save $900M but the savings going forward with the new system being proposed, is not as clear.
Dirty Football? No I am not talking about Deflate-gate, it seems 7 FIFA officials have been arrested in Switzerland, and charged with receiving bribes. Doesn’t seem that surprising to me, how else can you justify having the Football World Cup in Qatar ? Corruption in FIFA? Next thing you’ll be telling me is there are corrupt politicians!
My Writings for Week Ending May 29th
Hockey continues to linger, as does the NBA, but the CFL will start soon, as will the NFL. Plenty of things to enjoy on TV, but maybe I should be outside enjoying the sunny weather:
- I get asked many questions by folks and at times I am not really sure what answer they want to hear (although I have learned that when someone says, “Can I have your honest opinion on something, they really don’t) so I put out some Frustratingly Correct Financial Answers to help folks out.
- Inflation numbers continue to imply life is good and prices are low, but not really as we see in, Prices up 0.8% in April or More Fun with Numbers
- Remember I do rant about debt and such, and a classic one was Don’t Sweat the Small Stuff with Debt™