We're in good hands folks!
Bank of Canada Governor Stephen Poloz said interest rates
will probably be lower than they have been in past economic cycles once the
current recovery is complete. “What I really think we are observing is a high
level of self responsibility through this,” Poloz said at the press conference.
“There is all kinds of anecdotal evidence that people are choosing to buy less
house than they qualify for because they don’t want to over-extend themselves,
that our banks are underwriting very carefully.” “It’s more like a post-crisis
repair job for the economy as opposed to a classic recovery,” he said.
“Frankly, we don’t have models for that, we’re just watching it happen.”
No mention of responsible government borrowing/spending here, eh?
Translation: "Quantitative easing has let the tiger out of its cage, but we hope that repeating 'nice kitty, pretty kitty' will work out OK"
beware i think this means they smell more dollars to grab
ReplyDeleteWhat he really means is " The recovery is entirely based on easy, cheap credit and having created the conditions whereby Canadians have gotten themselves to record levels of personal debt ,we dare not raise interest rates."
ReplyDelete