Tag archives: Bank of Canada

5 Consequences for Canadians of the Bank of Canada's Rate Decision

Last update on Jan. 26, 2015.

Bank of Canada

 

Last Wednesday, the Bank of Canada (BoC) made a surprise move and cut the benchmark interest rate from 1% per year to 0.75% per year. The BoC is the government entity tasked with setting short term interest rates in Canada.

This move by the BoC will affect Canadians in a number of ways, especially for those of us who invest in stocks and bonds. In this article, I’ll explain 5 such consequences that we as Canadian investors can expect.

 

Why the Bank Of Canada Lowered Rates

First, let me explain why the BoC would want to move ...

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What's Happening To Canadian Bonds? (XBB)

Last update on March 3, 2015.

Buy National War Bonds

 

A little over a year ago, I published an article in which I argued that holding mid to long term bonds were a bad idea. In the article, I also criticized the Canadian Couch Potato for incorporating an ETF that holds such bonds in their portfolio.

In this article, I will give an update on what has happened to the bond market since then, as well as what I see happening going forward.

 

XBB Performance

For those of you who don't know, the Canadian Couch Potato is a popular blog dedicated to index investing. While they generally ...

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Weekend Roundup: Larry Summers, Putin, Unemployment

Last update on Sept. 6, 2013.

 

Larry Summers: The New York Times, and many other economists have a bone to pick with this guy.

 

Every Friday, we bring you noteworthy news articles that affects your investments.

 

New York Times Urged Congress Against Appointing Larry Summers

Newspapers are not usually this vocal about their views on political nominations, especially for the role of the Federal Reserve chair. But I guess the newspaper felt that the stakes are too high for the U.S. economy, so they decided to act. Some economists think that appointing Summers will stunt the economy.

Putin Pledged To Support Syria ...

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Weekend Roundup: Iran vs Israel, Bank of Canada, Detroit, McDonald's

Last update on July 19, 2013.

McDonald's logo

Every Friday, we bring you noteworthy news articles that affects your investments.

Israel Warned Iran About Its Nuclear Program

Why are gasoline prices going up? Because oil prices are going up. But then why are oil prices going up? One contributing factor is this rhetoric from Israel. If war breaks out between Israel and Iran, you'll see oil prices shoot up dramatically. Traders have bought oil on this possibility - hence the rise in oil prices.

Bank Of Canada Kept Rates And Outlook Steady

The Bank of Canada (BoC) controls the short term government interest rate, which in turn affects ...

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