Saturday, October 10th10.5°C

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 TSX13964.36-14.30
S&P CDNX552.26+5.20
S&P 5002014.89+1.46
CDN Dollar0.7723-0.0001
Natural Gas2.52+0.02

Okanagan Companies
Pacific Safety0.225-0.005
QHR Technologies Inc1.25+0.02
Metalex Ventures0.07+0.02
Russel Metals21.26-0.29
Copper Mountain Mining0.66+0.05
Colorado Resources0.07+0.00
ReliaBrand Inc0.0175+0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp3.25+0.14
Diamcor Mining0.97+0.03



22995331088 Sunset
2 bedrooms 2 baths
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council