Quote:
Originally Posted by iEatClams
While I agree that most Canadians are in too much debt and that an increase in rates would screw a few people over, do we really expect interest rates to go up any time soon?
Let's face it, every country is in a race to the bottom with reducing rates. Rates are at all time lows. It's more likely that rates will go down then to go up anytime soon.
People were expecting a Bond market bubble as nations start increasing rates. But nope, Feds stand pat, europe decrease their rates, china decreases their rates. Don't see it going up anytime soon.
I'm surprise inflation isn't higher. Oil prices are down, but prices of everything else seems to be up.
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While the bank of canada may not be about to raise rates due to Canada's not great economic situation, the liberals are about to spend, spend, spend - given the cdn dollar is not a global base currency, rates on cdn bonds will rise.
Also, saying inflation is high, but that the BoC won't raise rates is a scary thing to say - ur saying economic growth isn't enough to require a rate increase, but prices of everything bar oil is going up, I.e. Pressure on consumers - that's an ugly, ugly situation (stagflation).
If u don't know, stagflation is one of the worst economic situations to be in... Canada is dancing with the devil, here