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Mortgage Broker News | 27 Jan 2015, 11:11 AM Agree 0
One big bank has made a bold rate prediction for the near future but brokers aren’t biting.
  • Layth Matthews | 27 Jan 2015, 12:32 PM Agree 0
    This rate cut makes good sense given the headwinds still facing the economy. There is a major labor migration coming. Everyone looking for a job could go to Alberta for the last 10 years. Now where will they go? Home building? not yet. Manufacturing? not yet. Education and retraining in the meantime? Not with this fastidious government.

    Keynes would say that the Government should be investing in major infrastructure upgrades whilst they can borrow at next to nothing. Makes good sense to me.

    The power of a rate cut is increased by surprise. A weak Canadian dollar is the best thing that could happen in these waters because it essentially makes Canadian labor cheap and supports job creation.

    An oil price cut is also like a rate cut because oil is so integral to everything.

    We'll find out in 12 months whether this was inflationary or not. I bet not. In a dis-inflationary environment, VRMs and trailer comp models are the way to go.
  • Dominc | 27 Jan 2015, 05:10 PM Agree 0
    What a mess?!
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