The Bank of Canada left its key overnight interest rate unchanged at one per cent Tuesday, as it said the influential U.S. economy has grown at a slower pace than expected. -- Yahoo.ca
Inflation = 3.7%... Interest Rates = 1%... and he wonders why Canadians don't save and why they borrow money like there's no tomorrow.
well said 小小风 . Mark Carney is not stupid, he knows this very well.
That's why in today's Bank of Canada report, he removed one very important word compared to BoC's last report.
he removed the word "eventually"
Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually (word is removed this time)withdrawn, consistent with achieving the 2 per cent inflation target. Such reduction would need to be carefully considered.
now, there is no more doubt. The market sensed this, and Canadian Dollar shoots up. Interest rates are now widely believed to go up later this year, and that will be just the beginning.
(you can confirm what I said by searching on google news)