Blog entries - April 2011

Canada’s GDP decreased 0.20% in February

Annie De La Chevrotiere — Fri, 29 Apr 2011 04:00:00 +0100

Canada’s GDP decreased 0.20% in February following a 0.50% increase in January. Manufacturing and, to a lesser extent, wholesale trade were the main sources of the decline. Are these the effects of the higher Canadian dollar?

This slight decrease in GDP should help to stabilize upward pressure on interest rates.

View entire article from Statistics Canada.

Election, Canadian Dollar & Interest Rates

Jason McLean — Wed, 27 Apr 2011 04:00:00 +0100

With the Canadian election looming, many financial and political pundits have been sensationalizing the potential benefits and pitfalls for the economy. In general, investors and currency speculators like currencies in nations that have stable governments. Usually, this is due to the fact that there should not be any economic surprises that may adversely affect investments.

The NDP’s recent surge in the polls has a few columnists predic...

Bank of Canada Keeps Prime Rate at 1.00%

Annie De La Chevrotiere — Tue, 12 Apr 2011 04:00:00 +0100

Stable inflationary pressure has allowed the Bank of Canada to keep the prime rate unchanged at 1.00%. Potential upward pressure on CPI inflation due to increased energy prices will likely be offset by a higher Canadian dollar and decreased export activity. It is on this basis that the BOC kept prime at it’s current level.

The BOC forecasts that the Canadian economy will expand by 2.9% in 2011 and 2.6% in 2012.

View entire article at Canada News Centre.

Economic Update for April 6, 2011

Jason McLean — Thu, 07 Apr 2011 04:00:00 +0100

Fixed rates are up across the board this week. Most lenders have increased their 5 year terms by about 0.35% which is a huge increase for most borrowers. We still have a lender that has a 5 year fixed at 3.84% but this may increase over the next few days. If you want a rate hold, please contact us.

This increase may eventually be tempered by a few factors. The Canadian dollar just reached $1.04 and this continued strength should eventually have a negative e...