Bank of Canada Hints of Possible Interest Rate Cut

Mortgage and Lending with VERICO Designer Mortgages Inc.

Bank of Canada governor Mark Carney said in a speech recently that the Canadian economy has deteriorated more quickly than he had anticipated, hinting strongly he will cut interest rates at the next meeting on December 9.

This is also the first time that the Bank of Canada has conceded that the Canadian economy could be headed for a recession. "Starting from flat growth in the first quarter of 2009 and the second quarter of 2009 ... recession is a possibility for Canada," commented Carney.

The technical definition of a recession is two or more consecutive quarters of negative economic growth. The Canadian economy contracted in the third quarter ended and is expected to contract again in the current quarter ended Dec. 31.

Click Here to Subscribe to My Blog.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256

Each VERICO Broker is an independent owner operator.

Gina Burgio's Facebook profile

Comments (2)

Debbie Salmon
keller williams - Vancouver, WA

Thanks for taking the time to post this ... excellent information

Nov 21, 2008 01:52 AM
Mark MacKenzie
Phoenix, AZ

Hi Gina,

It is amazing to me that more governments are not addressing fiscal policy right now.

Monetary policy proved during Japan's "lost decade", and we are seeing it in the U.S. as well, to be completely ineffecitve in regards to stimulating the economy.

While lower rates will prevent things from getting worse, we need to remember that this is not an interest rate problem like most recessions are - this is different.

Nov 23, 2008 11:22 PM