Even Europe which contains some of the most bankrupt countries in the western world, moved up to 1.25%.
Meanwhile the B of C says that we are near their target of 2% inflation. How we can be at 2% when housing, food and gas are up several multiples of that is beyond me. How the three biggest costs inputs can be up 5-10% and yet the over-all number be 2%?
Even if assume their 2% is even near the mark- which I doubt. That means that this recovery is being taken out of the hides of conservative investors.
You would have to get a 4 year GIC at ING (which pays some of the best rates) to make sure that your after tax return matches inflation. And that doesn't even allow your money to grow, just keep up.
However would you really want to lock your money up for 4 years? It depends if you think the B of C can hold the rate at 2% or if they will lose control and we could be at 4-5% in a couple of years.
And Marc Carney, with a straight face, lectures us about borrowing less and saving more.