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Mortgage Broker News | 25 May 2015, 09:07 AM Agree 0
It was a bold – and disputed -- claim when he first made it over a month ago, but one former BoC advisor is once again predicting rates will drop to zero.
  • Darr Robbins | 25 May 2015, 10:26 AM Agree 0
    What Mr. Wolf is not yet discussing is that there are no longer any lower bound to interest rates altogether. The Swiss National Bank (SNB), the European Central Bank (ECB), Danmarks Nationalbank (DNB), and the Swedish Riksbank recently have pushed short-term interest rates to levels below the “zero lower bound.” This is unprecedented.

    A significant withdrawal from US treasuries by foreign creditors would force the FED to monetize the supply. This will dilute the USD further. Every western central bank would then lower rates to unseen levels to prevent their currency from appreciating against the greenback. Stating that it cannot happen in Canada is presumptuous and naive.
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