Our amigos at Stats Canada published the latest Consumer Price Index numbers on Friday and it seems that the CPI is stabilizing a little, however, it is still near the Bank of Canada’s threshold where… Read More »Inflation Steadies in January
Hybrids Needed? Stats Canada published their monthly report on the Consumer Price Index for the 12 month period ending in December 2010, and the CPI jumped to 2.4% (year over year) from 2.0% (year over… Read More »Gas Fuels Inflation for the end of 2010
Raising interest rates and introducing tighter rules for Mortgages in 2011 really slowed down the Real Estate world? No, they didn’t, interest rates dropped again, and the charlatans simply found other ways to get around the rules.
Even in 2010 there was talk of Interest Rate rises but they never really came to pass, and now we seem to be keeping low rates?
In December 2010, the Bank of Canada chose to maintain its key overnight rate at 1.0%, reinforcing a strategy of “loose money” to nurture a fragile economic recovery. This post unpacks the cautious tone of the central bank’s announcement, which acknowledged sluggish exports and a still-vulnerable economy despite strong household spending and business investment. With inflation appearing to behave and excess capacity still present, interest rate hikes were off the table. The post humorously reminds readers that while today’s rates seem low, they once hit 20%—and history can repeat.
Keywords: interest rates December 2010, Bank of Canada, monetary policy, low rates Canada, inflation target, economic recovery, fragile growth, deflation risk, Canadian finance
