- Joined
- Aug 22, 2008
- Messages
- 428
-The Bank of Canada cut the overnight rate by 75 basis points to 1.50%, more than the consensus forecast for a 50 basis-point ease. The Bank highlighted that the global economic backdrop "has deteriorated significantly" and that financial markets "remain severely strained". The Bank also acknowledged that Canada`s economy "is now entering a recession" and that the core inflation rate is likely to be lower than policymakers expected in October.
-While the large 300 basis points of interest rate cuts since late 2007 plus past and expected future fiscal stimulus and the recent depreciation of the Canadian dollar will not prevent a recession, the powerful cocktail of measures is expected to limit the extent of the decline in activity, with RBC forecasting that growth rates will return to the positive column by mid-2009.
Kudos to those with VRM`s
...(read: not me
)
-While the large 300 basis points of interest rate cuts since late 2007 plus past and expected future fiscal stimulus and the recent depreciation of the Canadian dollar will not prevent a recession, the powerful cocktail of measures is expected to limit the extent of the decline in activity, with RBC forecasting that growth rates will return to the positive column by mid-2009.
Kudos to those with VRM`s