March 25, 2009
Inflation hits 3.7% in Canada... We all lose if we are in savings accounts or in the stock market (notice the stock market's volitility lately?).
Hopefully the banks will start to raise "High-rate" savings account rates soon... OR the BOC gets the courage to raise interest rates quickly to combat inflation and reward the savers.
Canadian inflation shot up to 3.7 percent in May to the highest rate since March 2003, well above expectations and far above the Bank of Canada's 2.0 percent target. The month-on-month rise in prices more than doubled to 0.7 percent
Have a great day
November 8, 2009
Ally just dropped its 5 year GIC to 3% but still has 2% on its daily savings. It is true that our society has been put in such a "false wealth" position by all the cheap easy money. Prosperity is fake if we are using credit and pay later schemes to get what we want. I always shake my head when people buy furniture and electronics with no money down and dont pay till next year plans. MAYBE YOU CANT AFFORD THE STUFF????
Our sense of entitlement has overridden our common sense and instant gratification wins out as we pack our homes with junk from off shore. Living a responsible life financially isnt rewarded since the money men control both sides of the equation... they lend the cheap cash and set the rates for people who have money in the bank. sad house of cards we have built.
With inflation at 3.7%, the Bank of Canada will, in all probability, be raising interest rates 25 points on July 19th. In preparation, banks having been dropping their GIC rates about 25 points these past few weeks. Then, when the Bank of Canada does the rate hike, GIC rates will go up 25 points "to exactly where they were before". Upshot, banks will be raking in the doe with this rate hike and savers will get zero! Of course the banks will say, "Well, we followed the Bank of Canada. We raised rates 25 points..."
Bryan Strome said:
With inflation at 3.7%, the Bank of Canada will, in all probability, be raising interest rates 25 points on July 19th."
Economists are predicting that no rate hike will occur on July 19th. They expect that the next rate hike will be Sept 7: http://ca.reuters.com/article/.....IC20110713
The median forecast also showed that the bank would end the fourth quarter with the key rate at 1.50 percent, down from 1.75 in the previous poll. The rate was seen ending 2012 at 2.50 percent, down from 3 percent.
November 8, 2009
December 12, 2009
Secured or unsecured? If unsecured, it could be ING is just trying to widen their spreads a bit - spreads are incredibly compressed right now with deposit rates so close to what money is being lent at. This could be their attempt to increase the spread on borrowers, rather than lowering rates for depositors.
I won't hold my breath. I think we're in a low interest rate environment at least for another year, perhaps two.
Bank of Canada holds rate at 1% http://www.cbc.ca/news/canada/.....-july.html
Late last year, Bank of Canada governor Mark Carney talked extensively about the need for Canadians to rein in their personal debt levels, a signal many experts interpreted as the central banker about to get tough on rising prices.
Indeed, many economists began predicting that the bank would boost rates in July, especially after three months — March, April and May — when inflation popped above the central bank's one-to-three-per-cent target range for price growth.
Carney, however, began signaling a change of sentiment in June when he talked about the financial "headwinds" Canada faced in an interview with the Wall Street Journal.
Still, many economists believe the Bank of Canada will boost interest rates towards the end of 2011 as long as the Canadian economy keeps to its current decent GDP growth path.
August 9, 2011
It looks like with what's been going on in Europe and the US that interest rate forecasts are starting to doubt that we will see a rate hike this year and that there may even be a rate cut: http://www.vancouversun.com/bu.....story.html