Bank of Canada Rate Cut

[ajl]

Canadian economy already in a depression, this rate cut just advertises the fact. This one unlike the 1930's will not end in a decade but will be permanent. Canada has three industries: oil, farming, and government. Guess which one is growing? Spot the problem.

[cottonpicken]

I had calculated the rise of our dollar but mis calculated the fall(all here over the years). I mistaking thought we would control our current account and balance of trade public deficits private deficits foreign reserves etc etc.

Now having a hard time re calibrating so very much enjoy the discussion. (Check your premise-right Pars lol i.e rand for those that never followed her)

Very worried we are being set up to fail like Australia (Malle).

[TOM4CWB]

It does not take a genius to figure out that all levels of Government 'Win" with the lowering of the CDN$... which is valid being that black oil has dropped in half.

The drought on the western Prairies also cuts revenue and taxes to all levels of Gov's... this will help mitigate the impact without a gov. program... devalue CDN$... increase value of primary Agriculture... oil and mining.

There could be a silver lining to this!!!

Cheers!

[Flatlander]

Also different leadership and ideas at BOC since Carney left. Believe Poloz comes from more an eastern manufacturing export stance.

[wilagro]

Instead of lowering the Bank Rate...they should have raised it to about 1.5% this year and also consider further raises in the future.

The true value of housing would show up quite rapidly and the people who are now considering buying these overpriced homes would be better off waiting for the prices to fall.

We have idiots running the Bank of Canada and our Federal Government.

[Rareearth]

Must suck to have money in the bank.

[Oliver88]

A family in Saskatoon can now "afford" a $600k house instead of a $550k starter home.

FCC customers who have variable rate mortgages will benefit, hopefully FCC passes on entire decrease. This will be bullish for farmland prices.

Banks will increase their net income by not passing on the whole BOC cut.

Lower $ good for wheat Fx basis, canola price and bad for fertilizer prices. BTO's will pay more for new farm equipment.

[Rareearth]

Politz is good for the BOC and Canada. Yes he was with Export Development Canada. He knows and hopefully understand from the time at EDC how important exports are to Canada.
Each time a country lowers the rates is equivalent to a right upper cut in the boxing ring. If enough upper cuts are delivered over time every one hurts and the fight is over....it's a draw. No one seems to have a solution for global economies, so expect export, currency, interest rate fights to continue, high valued stock markets for the next few years. Every one will tire, no energy or upper cuts to fight with things will rebalance. Then interest rates and inflation will have there day and turn

[TOM4CWB]

Greece shows what happens when there is no national interest policy allowed. Canada is doing better!!!

[cottonpicken]

Greece has no national fiscal sovereignty

The normal playbook would be to restructure the debt crash the currency spike the bond yields and start to rebuild. But they gave all that up joining the euro. The poor stupid bastards

[farmaholic]

Charlie, why didn't you hedge the currency?