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- Sep 18, 2007
- Messages
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Perhaps we will be heading into a period of `stagflation`
http://www.financialpost.com/Story.html?id=377621
http://www.financialpost.com/Story.html?id=377621
Interest Rates
- Thread starter EdRenkema
- Start date
Interesting article. There are definitely some whacky forces at play in the macroeconomic spectrum; a credit crunch, US bank collapses, the dollar at a 30 yr high, etc.
One would need a crystal ball to predict where rates are going. My horsetrack bet is lower for the next six months, heading up in 12 months, since I don`t think our economic slowdown will have as much of a trough as the American recession.
One would need a crystal ball to predict where rates are going. My horsetrack bet is lower for the next six months, heading up in 12 months, since I don`t think our economic slowdown will have as much of a trough as the American recession.
- Joined
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Calgary Herald June 10, 2008
Bank of Canada decides to keep interest rates on hold.
http://www.canada.com/topics/news/story.ht...87-68adc7078672
Bank of Canada decides to keep interest rates on hold.
http://www.canada.com/topics/news/story.ht...87-68adc7078672
- Joined
- Aug 30, 2007
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"Canadian shoppers are still paying 18 per cent more on average than Americans for the same items, BMO Nesbitt Burns says in a study that suggests consumers aren`t reaping the benefits of a strong dollar.
The report released Wednesday - Uh Oh ... The Price is Still Wrong - compared a broad range of items, from automobiles to Huggies Pullups."
Canadian shoppers still pay more than Americans, new report says
I suspect we`ll see a good chunk of that disparity reduced via price reductions over the next 6 months, and that should help to keep inflation low and maybe will allow even more reduction in borrowing costs.
The report released Wednesday - Uh Oh ... The Price is Still Wrong - compared a broad range of items, from automobiles to Huggies Pullups."
Canadian shoppers still pay more than Americans, new report says
I suspect we`ll see a good chunk of that disparity reduced via price reductions over the next 6 months, and that should help to keep inflation low and maybe will allow even more reduction in borrowing costs.
QUOTE (GarthChapman @ Jun 11 2008, 05:16 PM) I suspect we`ll see a good chunk of that disparity reduced via price reductions over the next 6 months, and that should help to keep inflation low and maybe will allow even more reduction in borrowing costs.
Hopefully so, Canadians have long been getting screwed in this regard. It`s entertaining how our prices adjust upward so quickly, but when the dollar appreciates, it takes forever to see the benefit.
The US is definitely experiencing stagflation (economic growth is essentially flat and inflation is taking hold above 3%) even though you won`t hear that scary word on the news networks. The inflation part explains Bernanke`s about-face on interest rate cuts. They are walking a razor`s edge, because while they want to curb inflation, the economy is slow and is therefore in desperate need of monetary policy stimulus, i.e. rate cuts. While the Cdn Feds are following the US lead, I doubt they will start actually raising rates anytime soon. Although a month ago I would not have predicted they`d freeze prime till it was 4.25 or so...
Hopefully so, Canadians have long been getting screwed in this regard. It`s entertaining how our prices adjust upward so quickly, but when the dollar appreciates, it takes forever to see the benefit.
The US is definitely experiencing stagflation (economic growth is essentially flat and inflation is taking hold above 3%) even though you won`t hear that scary word on the news networks. The inflation part explains Bernanke`s about-face on interest rate cuts. They are walking a razor`s edge, because while they want to curb inflation, the economy is slow and is therefore in desperate need of monetary policy stimulus, i.e. rate cuts. While the Cdn Feds are following the US lead, I doubt they will start actually raising rates anytime soon. Although a month ago I would not have predicted they`d freeze prime till it was 4.25 or so...