The US Fed's plan to end Quantitative Easing

[bizkitgto]

I've been hearing about this for a while now, but now it's approaching:
http://business.financialpost.com/20...ates-us-china/

Any thoughts on Canada's Future interest rates, the BoC said they'd hold even if the US makes a move up. Eventually they will go up....just thinking about QE, interest rates and Canada's (supposed?) housing bubble is causing a lot of concern at home and abroad. Any thoughts, is it all BS?

[Coach]

Originally Posted by bizkitgto

I've been hearing about this for a while now, but now it's approaching:
http://business.financialpost.com/20...ates-us-china/

Any thoughts on Canada's Future interest rates, the BoC said they'd hold even if the US makes a move up. Eventually they will go up....just thinking about QE, interest rates and Canada's (supposed?) housing bubble is causing a lot of concern at home and abroad. Any thoughts, is it all BS?

It can't really be BS. QE has to happen across the board in order to avoid a good uptick in inflation.

I think having interest rates so low definitely helped the recovery in a lot of places, but it has to be pulled back. There is a bunch of backlash because it obviously makes the cost of borrowing increase and thus anyone from huge businesses to people with small loans will be affected, but it has to happen. People are usually against those types of things though.

[SebC]

It's not the end of QE, it's the end of this cycle's QE. Big difference!

[bizkitgto]

Raising interest rates will signal a major shift in the US (and Canada's) economy, most people would view this as a sign that things are getting better....and ofcourse many others fear it will prove the real economy has been on dialysis for many years and can't survive without all that QE! The truth probably lies somewhere in the middle.