It looks like historic low interest rates are going to be with us for quite a while yet! A whole host of factors are combining to push interest rates down further.
A slowing Canadian economy, coupled with gloomy economic news from Europe, the US and China all combine to mean that interest rates in Canada are likely to remain extremely low for the foreseeable future and could go even lower.
Bank of Canada Governor, Mark Carney, who has been advising Canadians over the past few years to prepare for coming rate increases, has been conspicuously quiet in recent weeks. While he would like Canadian rates to return to more normal levels, Governor Carney cannot let Canadian interest rates get too much out of line with American rates, as this would push up the value of the Canadian dollar beyond its recent highs. A higher dollar would hurt exports and put even more downward pressure on the Canadian economy.
So the Bank of Canada is unlikely to stray too far from the strategy being pursued by its American counterpart. Expect the Bank of Canada to follow its American cousin as the US Federal Reserve makes a determined to push interest rates in the US even lower in the coming months through its announced policy of “quantitative easing”.
Canadian homeowners and consumers can look forward to lower interest rates, whether Governor Carney likes it or not!Tags: Ottawa Development, Ottawa Realtor John King, Real Estate Market, The John King Team Ottawa
Categorised in: Ottawa Real Estate Market
This post was written by John King Team