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Originally Posted by Spartacus
Noob question but Why wouldn't banks want to keep interest rates low? It's More business for them and it keeps the housing bust from blowing up in their faces. What economic changes would force bank to raise their rates?
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It's also not in Canada's best interest to raise rates since it'll cause our currency to appreciate, our goods get more expensive and we end up losing jobs because consumers end up importing goods rather than consume locally.
The Fed wants to raise rates in early 2015. BoC won't even have the slightest interest in moving their rates until they do. Equities is still a safe haven for at least the next 3-6 months. After that, things get interesting.