OTTAWA—Bank of Canada Governor Mark Carney kept borrowing costs unchanged Tuesday but used his rate announcement to warn debt-burdened consumers that today's low interest settings won't last too much longer.
Citing a precarious world economic outlook, the central bank held its trend-setting overnight interest rate at 1 per cent in an effort to sustain Canada's rebound from the global recession.
But Carney took the opportunity to alert Canadian consumers, businesses and financial markets that he will “eventually” have to take steps to drive up borrowing costs to slow inflation.
Above form the Toronto Star..
Is it just me, or are the rest of you getting a bit tired of Carney. He sounds like a parent who keeps telling his kid that if the kid doesn't smarten up, he will take away his allowance. Meanwhile the kid has gone from truancy to breaking windows and finally using hard drugs and all the while mummy Carney is standing there wagging his finger and threatening to..do something!
Meanwhile it is savers that are getting the beating. 1% rates when inflation is well over 2%. so what to do. Put it in high dividend stocks like YLO and lose 50% of your money in a year? Or buy bank stocks and hope for the best?
..or better still just spend the danged stuff and borrow more to spend. But be careful, Carney may, possibly, inevitably do something..
..Just do it- or shut up.
