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Mortgage Broker News | 11 May 2015, 08:01 AM Agree 0
Brokers have reason to rejoice: yet another economist has suggested that the Bank of Canada is unlikely to increase interest rates.
  • Darr Robbins | 11 May 2015, 03:26 PM Agree 0
    I agree with Mr. Jestin's view that interest rates will not increase but not necessarily for the same reasons. Canada's GDP will improve but only as a result of rising oil prices in USD terms. However, the US economy will not grow and recover. The undisputed fact is that US economy is 70% consumer related.
    With high real unemployment, off-shoring manufactures, no assets and high debt, where will US consumers find the cash to buy the inventory that's building up? Thus, Canadian non-energy exports to the US will not improve as the Canadian dollar appreciates because of strengthening oil prices. Governor Poloz knows this which is why he will attempt to trash our currency further to artificially grow these exports. Consequently, I expect him to drop yields further as a result.
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