Bank Rate

[Hamloc]

Bank rate stayed the same at 1.75%. It was interesting to me that they lowered the growth rate to just .3% for the 4th quarter and a predicted growth of 1.3% for the first quarter. Canada's economy is slowing and I was surprised with low unemployment and rising wages, what gives?

[sk_wheatking]

And yet our dollar is still strong at 76 cents, go figure.

[errolanderson]

BANK OF CANADA REVERSAL: Caution and finally a dose of reality from the BOC. BOC has lowered their annualized GDP to only 0.3% in the 4th quarter and adjusted lower Canada's growth to 1.3% in the 1st quarter of 2020. Bank of Canada key lending rate holds steady @ 1.75%, but writing is now on-the-wall of a rate cut this spring. ProMarket Wire, Calgary.

[blueversi]

Funny how the stagnation of an economy occurs when government and self proclaimed do gooders stifle a resource based country. This country will feel a world of hurt before things turn around if they ever do.

[ajl]

Is it possible that central banks are out of ammo and can't cut any more. Cutting short term rates risks a liquidity crisis like the repo madness like we just witnessed in the states. Too many players borrowing short and investing in long dated and illiquid assets. When payments are then due, nobody has any cash.

[helmsdale]

Too many players borrowing short and investing in long dated and illiquid assets. When payments are then due, nobody has any cash.

Reminds me of a quote that stuck with me on this site.

"Everyone's worth millions, but no-one has any phucking cash!"

[macdon02]

Is it possible that central banks are out of ammo and can't cut any more. Cutting short term rates risks a liquidity crisis like the repo madness like we just witnessed in the states. Too many players borrowing short and investing in long dated and illiquid assets. When payments are then due, nobody has any cash.

No.... it's this, and it's everywhere.

[macdon02]

For FCL it's $60 million per year outright tax over the last 3 years because of low rates. And no it's not a tax per se as it's going to the employees, but it's the Bank of Canada's decisions that are taxing the employer.

PS if this article is correct, the pension is under funded by $168 million after the top up by employer. Please correct me if I'm wrong.

[bucket]

This is the problem with federated. ...the management made the decision to offset wage increases years ago to put the money into the pension plan....

If they would have done their math back then.... they wouldn't have the problem today...

This issue is a result of poor management decisions years ago..

[macdon02]

This is the problem with federated. ...the management made the decision to offset wage increases years ago to put the money into the pension plan....

If they would have done their math back then.... they wouldn't have the problem today...

This issue is a result of poor management decisions years ago..

So they were to expect when zirp forever when originally there was 7-8-20% rates? All pensions were based on the assumption there would be more employees further down the road to the shoulder the load. Not a decline due to tech. Im sure refineries have had some computers added. Pensions are a ponzi like life insurance. If you are the last person alive will you be paid out or have your contributions been spent on the previous generation?

[bucket]

I don't like the union tactics but this is a management incompetence issue. ..

[jazz]

Guys chuck and dml and the other socialists said Canada is the fastest growing G7 nation. Stop being such downers. 1% GDP is great and unicorns and fairies will carry you to Justins utopia.

And even though Canada created ZERO jobs in the past 3 months, 200,000 new immigrants were permitted into the country in the same time period. On tract for a million this year. Wonder what they are all going to be doing?

[bucket]

Guys chuck and dml and the other socialists said Canada is the fastest growing G7 nation. Stop being such downers. 1% GDP is great and unicorns and fairies will carry you to Justins utopia.

And even though Canada created ZERO jobs in the past 3 months, 200,000 new immigrants were permitted into the country in the same time period. On tract for a million this year. Wonder what they are all going to be doing?

living somewhere with the rest of us paying for it......

[samhill]

IDK, but drove around Winnipeg today, the amount of new houses, new condos, new apartment buildings is staggering. And the houses are not nice bungalows, more like small mansions. Housing out to the perimeter on east side, south side, and getting there
on west side.

[sumdumguy]

Not much building going on in Regina.