Seeking Alpha

rktpcapitalmana...'s  Instablog

rktpcapitalmanagement
Send Message
RKTP Capital Management is independently owned with over 14 + yrs experience in the derivative & securities industry, knowledge of the Foreign Exchange & Precious metal markets , along with trading in Capital markets. This combination of experience and ownership cultivates an environment... More
My company:
RKTP Capital Management
My blog:
Profit & Blog
  • Bank Of Canada Possibly Lowering Rates 0 comments
    Oct 28, 2013 12:59 AM

    Bank of Canada possibly lowering interest rates in Canada??

    This topic has been circulating amongst Canadian economists, traders and even business media analysts for over the past few years pertaining to Bank of Canada Interest Rates. Since Mark Carney (former Bank of Canada chairman...presently BOE chairman) set the path for all Central banks to follow.back in 2011. Basically he froze rates and that structure has remained for the newly appointed Stephen Poloz Bank of Canada chairman. In fact, the FED has not risen their rates and the RBA in Australia has changed their strategy to slash their interest rates.

    The hype of interest rate hikes has allowed the 6 big Canadian banks to capitalize and sway Canadian homeowners on interest rates and lock in fixed rates for 3 or 5 years. Variable rates considered risky, yet now those who have variable rates will benefit further from a lowering of rates.

    The real picture is that the Canadian consumer could not handle another rate hike due to over-leveraging on various debt products, credit cards, multiple loans i.e. mortages, student loan, car loans. To raise rates would be suicidal for the Canadian economy. Of course growth for an economy starts with supply and demand. Currently, the only demand we see here in Canada mainly from international investors parking their funds here as a safe haven and purchasing condominiums and newly built homes. The average Canadian willing to request a new loan from their local bank either for a small business or to purchase another home etc...has more stringent rules applied to meet the criteria.

    Poloz announcement last week is nothing new to myself or others, Canada's economy will continue to stagnate as the US is not our "saving grace" to prosperity once more. Canadian companies are sitting on hoards of cash reserves and until "uncertainty" in the market plagues investors, Canada will remain in a "turtle paced" economy.

    If BOC possibly lowers Interest Rates, Poloz should make the decision prior to the first quarter of 2014, as it will allow Canadians to make further payments on their existing loans and breathe easier. Maybe if your lucky Mr. Poloz the average Canadian might have less debt and pay back their loans..wouldn't that be the ideal situation for Canada??

Back To rktpcapitalmanagement's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.