Quote:
Originally Posted by Mike Oxlong
Wow. I am surprised that they dropped again. The Bank of Canada overnight rate is now at .25%. They can only drop it once more and then they have hit absolute rock bottom. I don't know if they can even go to 0%.
In one of the articles I was reading it said they are planning to leave it there until at least mid 2010. Variable rate holders can rejoice for a while it looks like.
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There has been some talk about the possibility of the fed engineering negative
real interest rates by setting the key lending rate near 0 and then engineering inflation of a few percentage points by increasing the money supply.