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BoC lowers target for overnight rate

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Justin da Rosa | 21 Jan 2015, 10:20 AM Agree 0
For the first time in over four years, the Bank of Canada has changed its target for the overnight rate, which may come as a surprise to agents and even their mortgage partners.
  • Bruce Dougall | 21 Jan 2015, 11:37 AM Agree 0
    This is not a surprise to me. I have been saying for years now that interest rates will not go up. Why? Because Canada and particularly the USA would be bankrupt in a month if this happened. The USA currently can barely pay the interest owing on their 17 Trillion dollar debt. Under the Obama administration, the USA debt has increased more than ALL previous Presidents combined! Their debt is unsustainable. Both Canada and the USA will not raise interest rates now that both nation's debt is so high. The USA is living on not only borrowed money but their economy is on borrowed time as well.
  • Steve Malloy | 21 Jan 2015, 11:47 AM Agree 0
    Bruce, while your argument is interesting, it is also flawed. Foreign debt interest is not necessarily tied to the bank rate. Furthermore, even though the United States is the largest debtor nation ever in history, the US is in an enviable position that they can just continue to print currency to make their debt payments. So long as the rest of the world accepts the $USD as the principal currency for trade and so long as the US dollar continues to be the world's foremost reserve currency, the issues you cite with debt and debt repayment are moot and void.
  • Mike | 21 Jan 2015, 09:50 PM Agree 0
    The previous comments have some accurate points but ignore the fact that Canada has a SPP Agreement with the USA and Mexico.It was not necessary to be ratified by Congress or Parliament but will absorb us in whatever dire situation they become embroiled in.Look it up if this comment seems to have any merit or ??
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