Monday, October 22, 2007
Bank of Canada
Today, we saw the Canadian dollar slide lower due to the comments of our bank of Canada governor. How is this relevant to interest rates? My opinion the Bank of Canada is doing everything to not lower the prime rate as the US did. They are hoping to drive the dollar lower and slow down the housing market by making negative comments. My opinion we should be at a 6.00% prime rate right now with the talk of going lower. The US is still sorting out the sub prime mortgage troubles, which is going to force lower rates in the US. Watch for comments in the coming weeks before the next interest rate announcement.