Interest Rate Divergence

[errolanderson]

The U.S. is going it alone on rate hikes. Fed chair Janet Yellen is likely to announce a 1/4% hike at 12:30 mountain today.

But with the yields on German 2-year government bonds falling to an historic low of -0.78%, the differential with the US at this point of the yield curve is almost 200 bps ...

BOC likely to maintain rates at 1/2% well into 2017.

[15444]

Watch for BOC to go down a 1/4% in 2nd quarter of 2017 to respond to collapse in consumer spending due to effects of carbon tax and elimination of NAFTA.

[canolacrazy]

Canada 2017. federal deficit balloons to 45 billion. TSX takes a beating. Ontario near bankrupt. Alberta on the way. carbon tax just gets started hitting farmers hard. and it's just the beginning. the pain gets more every year as we move to $50.00/tonne of co2 by 2022. then a new "agreement" to move to $100.00.
thank God we're saving the planet from certain doom.
and Trump just laughs.

[errolanderson]

Watch for BOC to go down a 1/4% in 2nd quarter of 2017 to respond to collapse in consumer spending due to effects of carbon tax and elimination of NAFTA.

Agree . . . The BOC is more likely to cut rates in 2017 than hike. Consumer spending is going to be hit.

[Oliver88]

Interesting difference in direction of Canada and USA.

Fed raised their rate .25%
The Americans are booting out their environmentalist president and his administration shortly.
USA has the Dow approaching 20,000.
Trump is filling his cabinet with business leaders and energy industry proponents.
USA will be cutting business regulations.
USA will be cutting EPA and environmental regulations for drilling of oil and using coal.
Rex Tillerson will be shortly approving Keystone XL.
Janet Yellin is forecasting 3 more rate hikes next year.

Canada, Alberta, Ontario, Quebec have opposition governments who are lead by social justice warriors that want to impress the UN by taxing carbon.
Trudeau is implementing policies to tax carbon that will hurt the economy. (Especially the west)
Canada caves into special interest groups and environmentalists regarding pipelines and shuts down Northern Gateway Pipeline.
Trudeau put an embargo on oil tankers on the Northern BC coast.
CDN $ down over .5 cents after Fed rate hike.

Will the wild card for the CDN $ be oil?......likely.

[Guest]

but,but, but.... cbc , msm, the guys on here ,most of the experts, all said stock market would crash if trump got in . they can't imagine how someone that has run a buisness could be better than a bouncer/snowboard instructor/drama teacher(has he even worked as a teacher????) ? what a f$&king joke this is . keep hoping I'll wake up and find its all been a nightmare .

[Hamloc]

Some obvious thoughts. The lower Canadian dollar has not boosted our non energy exports. It would seem the Liberal brain trust wants a lower dollar yet. I agree if the economy is still sputtering by spring 2017 the Boc will lower interest rates by .25, by that time the US Fed will probably have raised there rate another .25. So will our dollar be down to 65 or 70 cents by then. Trudeau and Notley would have us believe increasing our tax base with the carbon tax will increase growth, hard to believe Canadians are stupid enough to believe it!

One thing is for sure we will see if a high taxing interventionist government in Canada or a pro business one in the USA will create greater economic growth! I am betting on the latter.

[ajl]

Agree with other posters here. Real growth in the USA while Canuckistan turns into Venezuela north. Wonder it there exists a dumber choice for PM of Canada.

[Oliver88]

Dow has really moved since election.

[bucket]

When the carbon tax comes in and businesses start to leave.... the how power is generated won't matter because power consumption will go down.....but the bill to pay for overpriced green energy will go up ....then people start to leave as well....can't pay the power bill because their job left .....


Then what.....Trudeau starts bribing business back.....and pretends he's done something.....


Interest rate increase creates problems ..... carbon tax creating problems. ...yet no one will just leave the money in the average Canadian pocket....


Hurry up 2019 so we can vote this dumbass out.....