Canada a step closer to hiking rates from record low?

By Peter Boockvar - March 2nd, 2010, 10:05AM

After Australia raised rates to 4% as expected, the other major commodity country, Canada, decided to leave rates unchanged at their record low of .25%, as expected. They also repeated that policy won’t change before the end of Q2 but they hinted that they could go up soon after as they said “core inflation has been slightly firmer than projected, the result of both transitory factors and the higher level of economic activity.” They also said “the level of economic activity in Canada has been slightly higher than the bank had projected” in its Jan report. Rates have been at record lows because of the BoC’s concern with economic growth in the US, Canada’s biggest trading partner, and due to the strength in the Canadian $ which today is rallying to a 6 week high vs the US$ but the time has passed for record low interest rates in Canada considering their more positive outlook and bubbly housing market.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Canada a step closer to hiking rates from record low?”

Pat G. Says:
March 2nd, 2010 at 1:04 pm
““core inflation has been slightly firmer than projected”

Does Canada measure that differently than the U.S.? lol
ptgerber Says:
March 3rd, 2010 at 2:53 pm
housing is ludicrous in many parts of Canada. I’m in Toronto and bidding wars resulting in houses going for 10% + over asking are common. That’s with much tighter mortgage rules than those America has, and no tax deduction for interest either.