OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3 1/4 per cent.
The three global developments highlighted in the July Monetary Policy Report Update continue to have a major influence on the Canadian economy. Two of them – the course of the U.S. economy and the ongoing turbulence in global financial markets – have evolved broadly in line with the Bank’s expectations. However, there is an increased risk of a more pronounced interplay between weakness in the U.S. economy and tightness in credit conditions that could affect the U.S. outlook for 2009.
Good to know my debt payments aren’t going up in the near future.
An analyst yesterday predicted Gasoline prices in Canada hovering near $1.00 per liter by Christmas, this would make for a very interesting change of events. Would other prices drop? Would deflation kick in? I doubt it, everyone will simply build that into their profit margins again, but still, not having to spend $160 to pick up my daughter from Waterloo would be nice.
My article Sunday Thought: Debt is Bad in the Bible Too? posted at Canadian Personal Finance Blog was mentioned at Just Another Day of Catholic Pondering in the Catholic Carnival #188: Journey of Faith