No Rate Hike in March 2010
The Bank of Canada kept their overnight target rate at 1/4 per cent for March 2010. This gave us all cheap money for a little while longer. The C.D. Howe institute urged the bank in March 2010 to go Harder, Faster with their rate increases. However, the bank decided to hold off.
The telling phrase to read in this report was:
“…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….”
By the end of the second quarter, or say the June/July time frame, money is going to start getting tighter. This 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
Again, I think Larry MacDonald will be in a large room. He will be with a bunch of other "sweaty" financial newspaper types. They will prepare 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.
📈 Bank of Canada Overnight Interest Rate (2005–2025)
🔍 Key Highlights:
- 2005–2007: Rates hovered around 2.75% to 4.50%, reflecting a stable economic period.
- 2008–2009: In response to the global financial crisis, the Bank of Canada slashed rates to a historic low of 0.25%.
- 2010–2018: Gradual increases brought rates up to 1.75% by late 2018.
- 2020: The COVID-19 pandemic prompted a rapid reduction back to 0.25% to support the economy.
- 2022–2023: To combat rising inflation, rates were increased sharply, reaching 5.00% by mid-2023.
- 2024–2025: As inflation pressures eased, the Bank began lowering rates, settling at 2.75% by April 2025.
For a detailed breakdown and the most recent data, you can visit the Bank of Canada's official Interest Rates page.
2010 Interest Rate Articles
- Interest Rates Going Nowhere For January 2010
- Bank of Canada: No Rate Hikes (March 2010)
- Interest Rates, What Did I tell You? April 2010
- June 2010 When Interest Rates Doubled or Rates Up 100%!
- Interest Rates Sky Rocket September 2010
- October 2010 Rates remained the same.
- December 2010 Money is still too loose
- January 2011 No Rate Change but Promises of BIG changes Coming
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