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Economy on edge of recession: Bank of Canada
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| Yohan |
http://www.reportonbusiness.com/ser...y/Business/home
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HEATHER SCOFFIELD
Globe and Mail Update
October 23, 2008 at 10:35 AM EDT
The Bank of Canada says the Canadian economy is on the razor's edge of recession, and a full recovery is dubious and distant.
In a blunt 32-page assessment of the global and Canadian economies that is devoid of good news, the central bank says Canada's economy is contracting right now, and won't show any growth in the first quarter of next year.
The forecast ever-so-narrowly avoids projecting a recession, commonly defined as two consecutive quarters of contraction. Instead, the central bank sees the economy shrinking at a 0.4 per cent annual pace in the fourth quarter of this year, and showing zero growth in the first quarter of next year, before picking up speed.
“Economic growth in Canada has slowed abruptly this year, following a period of exceptionally rapid growth in the second half of 2007,” the bank said in its quarterly outlook that was layered with cautions about how unreliable forecasting has become in the face of crisis.
The bank reiterated its intention to continue cutting interest rates as needed. But the cuts won't be enough to fend off some tough times ahead. |
more on link
Uh oh... |
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| electro88 |
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| TO guy |
| I like that part about continuing to cut rates as needed. We're already almost as low as we can go. Nine or ten more cuts and my mortgagor will start paying me interest! Sweet!! |
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| VERTiG0 |
Oh my gosh I had no idea this was coming, holy what am I going to do
THANKS FOR THE HEADS UP, BANK OF CANADA, WE KNEW THIS MONTHS AGO |
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| Skipper |
| Maybe when the big 5 start passing along full BOC rate cuts, then maybe we can start thinking fiscal policy has the ability to do what it intends to do... |
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| MarkT |
well, they've only witheld 25bps at this point...not *that* a big deal and not without precedent.
the banks have already been cushioning their margins on fixed rate mortgages. IIRC, bond yields in September warranted a cut to them and that never happened.
in the last several weeks, most lenders have eliminated discounts from Prime on all variable rate products, even introducing premiums on mortgages (we charge Prime + 1% now, no exception...crazy!).
it's going to get worse before it gets better... |
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| zoogla |
| quote: | Originally posted by Skipper
Maybe when the big 5 start passing along full BOC rate cuts, then maybe we can start thinking fiscal policy has the ability to do what it intends to do... |
easy there...
:p |
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| SniFFleS |
| quote: | Originally posted by Skipper
Maybe when the big 5 start passing along full BOC rate cuts, then maybe we can start thinking monetary policy has the ability to do what it intends to do... |
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| jon jon |
| quote: | Originally posted by electro88
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HAHAHA |
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| rabbitjoker |
| quote: | Originally posted by Yohan
Uh oh... |
Thanks pal. Welcome to this week...
Totally worthwhile. |
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| slingshot |
| LOL, they're a bit late to the party. I'm not sure how it took them so long to realize that we may be in trouble when commodity prices tanked quite some time ago...you would think that they could realize that when the main industry that was fueling our growth tanks, as will our economy eventually. It would be nice to have a proactive central bank and government instead of having to sit here and listen to them say "oh " much like they are right now. Everyone loses their marbles when the banks fail to match the BOC cut....but in terms of where we stand and what we have to deal with, this is probably the most insignificant of aspects. :rolleyes: |
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| Pett |
| quote: | Originally posted by MarkT
in the last several weeks, most lenders have eliminated discounts from Prime on all variable rate products, even introducing premiums on mortgages (we charge Prime + 1% now, no exception...crazy!).
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^5
couldn't be happier with my mortgage rate right now, were laughing.
correct me if im wrong but cibc has only withheld .10% after initially withholding .25% it looks like they changed their position.
Prime now being 4% |
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