Saturday, August 1st19.7°C
27107
26015

Canadians can bank on low interest rate environment for years to come: Poloz

Bank of Canada governor Stephen Poloz says Canadians should expect cheap borrowing costs to last for years even after he finally gets around to hiking interest rates.

The central banker told a business group in Saskatoon that the Canadian economy has room to grow but even when it returns to full capacity, likely sometime in early 2016, it won't take a big adjustment in interest rates to keep inflation in check.

Poloz says that the consensus is that interest rates will remain lower than historical levels — a so-called new norm — even when the economy is back firing on all cylinders.

The Bank of Canada has not budged on interest rates for almost four years, maintaining the trendsetting overnight rate at one per cent since September 2010.

Meanwhile, Poloz says that although Western Canada has been the main beneficiary of the commodities boom and higher oil prices, all Canadians have benefited to some extend through higher average incomes.

He says the bank's research has calculated that Canada's gross domestic income is about seven per cent higher today than it would have been without the improvement in terms of trade brought on by resource exports since 2002.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17689.86-56.12
Nasdaq5128.28-0.50
S&P 5002103.84-4.79
CDN Dollar0.7640-0.0052
Gold1096.90+0.60
Oil47.22-1.69
Lumber252.30+0.50
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences0.9101+0.1101
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 





FEATURED Property
2340991549 McClure Road, Kelowna
5 bedrooms 4 baths
$974,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26370




Member of BC Press Council


26707