In an interesting article in the Financial Post from early today, January 20, 2015, they quote Morgan Stanley who gives numerous reasons why Canadians can expect low interest rates here in Canada for quite a while.
‘Don’t look for an interest rate hike for two more years; in fact, there is a one in three chance the Bank of Canada will actually cut rates before the end of this year, Morgan Stanley predicts.’ ‘The bank not only pushed its forecast for the first rate hike to 2017, it predicted others would soon follow suit.’
‘On the back of plunging [oil] prices, Morgan Stanley has cut its forecast for economic growth 0.6 percentage points to 1.8% for 2015 and sees the malaise stretching into 2016, where it expects growth to slow to 1.5%, down almost a percentage point from its previous forecast.’
For more information, see the full article here:
So it looks we may avoid the much-talked-about interest rate hikes for quite a while longer.
CHRIS STEEVES
