Tag Archives: rates

Stephen Poloz may have to drop rates to zero, ex-Bank of Canada adviser warns


The Bank of Canada may cut interest rates to zero in the next six to 1 . 5 years as a rising Canadian dollar threatens the recovery, according to Fidelity Investments\’ David Wolf. Rebounding oil prices have spurred Canada\’s currency towards the biggest rally among Number of 10 nations versus the U.S. dollar within the last three months. Six reasons ...

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When the U.S Federal Reserve hikes rates, who wins, who loses, who draws


The longest drumroll within the 102-year history of the Federal Reserve precedes its next interest-rate increase. That doesn\’t mean some of its effects will not be surprising. Investors can pay now for Fed rate hike, or pay more later Investors will pay now, or may more later because the longer the Fed waits to boost rates, the greater damage it ...

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Banks’ lending rates decoupling from BoC to protect margins


The Bank of Canada’s latest 25-basis point rate reduction may not be that harmful to Canada’s biggest banks, who\’re attempting to preserve net interest margins by lowering prime lending rates by only 15 basis points typically, says Darko Mihelic, analyst at RBC Capital Markets. “We feel our net interest margin expansion thesis is intact for 2016,” Mihelic said in a ...

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Why it’s time for Stephen Poloz to swallow his pride and cut rates again


Earlier this year, not so good news for the economy was great news for stock markets. Just about every time some troubling economic data were released in the United States, stock markets rebounded. The S&P/TSX composite index, meanwhile, climbed by nearly five per cent in the four weeks following the Bank of Canada\’s surprise rate decline in January. Why the ...

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