No Rate Hikes
So the Bank of Canada kept their overnight target rate at 1/4 per cent for March, giving us all cheap money 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 now.
The telling phrase to read in this report is:
“…Conditional on the current outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target….”
So the end of the second quarter, or say the June/July time frame, money is going to start getting tighter, which could make for an interesting summer.
Time to start planning on how you are dealing with your debt (if you have it) with a higher interest rate, or what to do about your Bonds, given interest rates will go up.
Federal Budget Looms
I suppose Larry MacDonald will again be locked in a large room with a bunch of other “sweaty” financial newspaper types in preparation for the Federal Budget scheduled for March 4th. Larry always has interesting stories about what really goes on in that room, while all these “touts” pour over the budget to boil the essence of it down to a 1 minute blurb on TV or 750 words or less for the papers.
Hopefully we shall move back to a more balanced budget and maybe put together a plan to start paying off the national debt (again), but stay tuned, I am sure there will be something exciting on Thursday.
While acknowledging stronger-than-expected economic growth and inflation, the bank also suggested it was not prepared to hike rates early because of slack in the economy, continuing strength in Canada’s currency and weak U.S. demand for Canadian exports.
Belated Happy St David’s…..
The mountain sheep are sweeter,
But the valley sheep are fatter;
We therefore deemed it meeter
To carry off the latter.
We made an expedition;
We met a host, and quelled it;
We forced a strong position,
And killed the men who held it.
On Dyfed’s richest valley,
Where herds of kine were browsing,
We made a mighty sally,
To furnish our carousing.
Fierce warriors rushed to meet us;
We met them, and o’erthrew them:
They struggled hard to beat us;
But we conquered them, and slew them.
As we drove our prize at leisure,
The king marched forth to catch us:
His rage surpassed all measure,
But his people could not match us.
He fled to his hall-pillars;
And, ere our force we led off,
Some sacked his house and cellars,
While others cut his head off.
We there, in strife bewild’ring,
Spilt blood enough to swim in:
We orphaned many children,
And widowed many women.
The eagles and the ravens
We glutted with our foemen;
The heroes and the cravens,
The spearmen and the bowmen.
We brought away from battle,
And much their land bemoaned them,
Two thousand head of cattle,
And the head of him who owned them:
Ednyfed, king of Dyfed,
His head was borne before us;
His wine and beasts supplied our feasts,
And his overthrow, our chorus