Bank of Canada raises benchmark interest rate to 1 per cent - Macleans.ca
 

Bank of Canada raises benchmark interest rate to 1 per cent

Growth and investment expected to remain solid


 

The Bank of Canada has raised its benchmark interest rates one-quarter point to one per cent. As little as one week ago, analysts were split on whether the Bank would raise interests at all, but by yesterday, markets were predicting a 60 per cent chance of a rate hike. Better than expected U.S. manufacturing and jobs numbers this past week made the rate hike more likely. In a statement today, the central bank said the economic recovery would be “slightly more gradual” than it had earlier predicted, due to slower than anticipated demand in the U.S. However, the bank predicts that domestic demand will be solid and business investment will continue to be strong, justifying the rate hike.

Financial Post


 
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Bank of Canada raises benchmark interest rate to 1 per cent

  1. O.K, that's good enough showing confidence.

    Let's leave it there for a year or so, shall we? AJRs getting a little nervous, and doesn't want to see another stimulus package.

    • MYL didn't want to see the first one, either. Fat lot of good that did.

    • Especially considering the numbers coming out of the US recently.

    • "O.K, that's good enough showing confidence.

      Let's leave it there for a year or so, shall we?"

      I was hoping you were going to follow it up with a good joke about your mortgage. not that I have one about mine either.

  2. I really can't grasp the purpose of stimulus, is it to stimulate the economy or stimulate more debts? Hmm, increase debt loads to pay up one's debts… I hope that is not a recipe for bankruptcy.

  3. Ouch!

    Looks like a lot of familys mortgage payments got more expensive!

    • if you can't afford a couple of 0.25% increases, don't get a variable rate mortgage! (5-year fixed-rate mortgages haven't changed since the spring)

      • There is no protection in fixed rate mortgage. Most fixed rate mortgages are based on a percentage over prime. Prime has gone up.