Quote:Bank rate up to 3 per cent
Canadian Press
October 18, 2005
OTTAWA -- As expected, the Bank of Canada nudged up its key overnight interest rate by a quarter percentage point to 3.0 per cent on Tuesday, the second such bump in two months.
Chartered banks and other financial institutions were expected to follow suit with their loan rates.
The central bank warned that this is likely the first in a series of rate hikes over the next few months. Some analysts have predicted the rate will hit four per cent by April.
''Overall, the Canadian economy now appears to be operating at its full production capacity,'' the bank said in announcing the increase.
It said there are clouds on the economic horizon.
While growth has been solid, jumps in energy prices and the robust Canadian dollar are concerns.
Inflation has been running at about two per cent, but rising energy prices are expected to push that up to three per cent in the next few months, the bank added. Inflation is then forecast to slip back to about two per cent in the second half of next year.
''Short-term risks to this projection appear to be balanced,'' the bank said. ''But as we look further out to 2007 and beyond, there are increasing risks that the unwinding of global economic imbalances could involve a period of weak economic growth.''
The bank is to outline its views of the economic future in more detail Thursday, when it releases this year's second Monetary Policy Report.
ING Direct has it's big 3% Savings sale on... wonder if they'll up it to 3.25% on this news
Raine,Oct 18 2005, 09:58 AM Wrote:Quote:Bank rate up to 3 per cent
Canadian Press
October 18, 2005
OTTAWA -- As expected, the Bank of Canada nudged up its key overnight interest rate by a quarter percentage point to 3.0 per cent on Tuesday, the second such bump in two months.
Chartered banks and other financial institutions were expected to follow suit with their loan rates.
The central bank warned that this is likely the first in a series of rate hikes over the next few months. Some analysts have predicted the rate will hit four per cent by April.
''Overall, the Canadian economy now appears to be operating at its full production capacity,'' the bank said in announcing the increase.
It said there are clouds on the economic horizon.
While growth has been solid, jumps in energy prices and the robust Canadian dollar are concerns.
Inflation has been running at about two per cent, but rising energy prices are expected to push that up to three per cent in the next few months, the bank added. Inflation is then forecast to slip back to about two per cent in the second half of next year.
''Short-term risks to this projection appear to be balanced,'' the bank said. ''But as we look further out to 2007 and beyond, there are increasing risks that the unwinding of global economic imbalances could involve a period of weak economic growth.''
The bank is to outline its views of the economic future in more detail Thursday, when it releases this year's second Monetary Policy Report.
ING Direct has it's big 3% Savings sale on... wonder if they'll up it to 3.25% on this news
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HAHAH i just looked at ING right before i looked at this post and say there 3% sale, wat a coincidence
No real Suprise really, I mean look at how fat our Dollar is shooting up against the american green back. Our Dollar hit highs it has not seen since the early 90's and it's still climbing every other week or so. So usually when they raise the interest rate it's always when our dollar is on the rise I find.
Frost__2001,Oct 19 2005, 10:26 AM Wrote:No real Suprise really, I mean look at how fat our Dollar is shooting up against the american green back. Our Dollar hit highs it has not seen since the early 90's and it's still climbing every other week or so. So usually when they raise the interest rate it's always when our dollar is on the rise I find.
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Except that raising the interest rates actually pumps our dollar up
higher as the government T-bills get a better rate of interest and are purchased.
No, what's pushing our dollar up is the price of oil right now. Since we're sitting on so much of it and now that the price is as high as it is, its actually worthwhile extracting it from the ground (Thinking Alberta Tar Sands here) which makes the Canadian dollar a great safe haven from the US greenback.
Add in a spike in interest rates and unless the US does likewise, 90cents here we come <_<
NefCanuck
yeah I can see our loonie hitting 90 cents by christmas or with-in the new year, so Whoo Hooo!
Frost__2001,Oct 19 2005, 01:56 PM Wrote:yeah I can see our loonie hitting 90 cents by christmas or with-in the new year, so Whoo Hooo!
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Take some business classes and then say whoo hoo again if you can.
Higher dollar = ass
Raine,Oct 19 2005, 09:15 PM Wrote:Frost__2001,Oct 19 2005, 01:56 PM Wrote:yeah I can see our loonie hitting 90 cents by christmas or with-in the new year, so Whoo Hooo!
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Take some business classes and then say whoo hoo again if you can.
Higher dollar = ass
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Unless you're an importer or a travel agent. High Dollar = woohoo
oscar you mean an exporter, right.
FocusGuy7476,Oct 19 2005, 11:20 PM Wrote:oscar you mean an exporter, right.
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no importer is right
importer--american stuff "cheaper"
exporter--making less american money