Official answer: because inflation is rising, or is threatening to rise, above the target 2% rate.My question is why can't bank of canada keep interest rates low.
From the wiki entry on Bank of Canada...but raising interest rates would but hundreds of thousands of people with 5 or 10 percent down into bankruptcy.
Why would bank of canada want people forced into bankruptcy.
How can this be benefical to our economy to raise rates?
Buddy, you don't wanna be in the situation those guys are in.The USA is offering 20-30 year fixed mortgages at the low 4% rate.
How far are we behind them?
if they can offer it, we can.
Yeah Imagine the distress that could cause.Buddy, you don't wanna be in the situation those guys are in.
Can you even begin to imagine what economic mess makes the govt. offer 30 year fixed rates @ 4%?
Huh? Times are very good! Banks have been lowering their fees and offering better bargains on things like TFSAs, high interest savings account and more. I have no doubt that this is in response to all the credit unions we've been seeing (someone posted in another thread about all the ones in Manitoba) and the discount online brokerages sucking money away from big banks as little web-savvy investors like us learn. Knowledge is power, the web gives the little people an enormous knowledge base to research with only a few clicks. Forums like this are good too and competition is a very good thing. I am grateful for the presence of these smaller companies that compete for our money.... I would like to see an alternative bank/credit union push the rates down and taking business away from the big 5, but those days may be gone for good?