Our brother in arms, Canada, is joined with us at almost zero interest rat=
es as their benchmark rate is at .25%. Bank of Governor Carney is not spec=
ifically saying higher interest rates are coming imminently but in a speec=
h just given he is saying that the extraordinary measures taken by them ar=
e working and will “eventually return” Canada to “ordinary times…and, wi=
th them, more normal interest rates and costs of borrowing. It is the resp=
onsibility of households now to ensure that in the future, when the recove=
ry takes hold and extraordinary measures are unwound, they can still servi=
ce their debts.” He also specifies in terms of his encouragement to househ=
olds to maintain healthy saving levels and to prepare for inevitably highe=
r rates that “while asset prices can rise and fall, debt endures.” An asid=
e, Norway unexpectedly raised rates this morning by 25 bps to 1.75%.
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