Quote:
Originally Posted by peter12
So now the house-flipping will heat up even more in Vancouver and Toronto, and middle-class owners will take on even more debt. I don't see the BoC's line of reasoning on this cut.
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It wouldn't shock me if there was some political pressure on them to drop rates now - hopefully increase some consumer spending, make the economy look a bit better in time for the election...
Next rate announcement comes soon before the election, and it would probably look bad on the government if the rate were to be dropped then instead of now... people going to the polls would definitely remember an announcement that rate is dropped b/c of recession a few weeks before election, vs. doing it now, months before said election.