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Discussion Starter · #2 ·
A few excerpts:

The global economy has slowed markedly as several downside risks to the projection outlined in the Bank's July Monetary Policy Report (MPR) have been realized.
The Bank now expects that the euro area-where these dynamics are most acute-will experience a brief recession.
In the United States, diminished household confidence, tighter financial conditions and increased fiscal drag are expected to result in weak real GDP growth through the first half of 2012, before growth strengthens gradually thereafter.
Growth in China and other emerging-market economies is projected to moderate to a more sustainable pace in response to weaker external demand and the lagged effects of past policy tightening.
Although Canadian growth rebounded in the third quarter with the unwinding of temporary factors, underlying economic momentum has slowed and is expected to remain modest through the middle of next year.
Net exports are expected to remain a source of weakness, owing to sluggish foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.
Overall, the Bank expects that growth in Canada will be slow through mid-2012 before picking up as the global economic environment improves, uncertainty dissipates and confidence increases.
The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.
 

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I recognize the words you are saying but not together in a sentence like that....
*blink* *blink*
So, for those of us who do not follow such things (let's pretend that's me)

Is this a good thing or a bad thing?
 

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At a basic level, the rate not going up is a good thing for anyone with variable mortgages, or looking to buy soon. It is also good for the real estate market, which gains or loses activity/momentum depending on lending costs.

However, the rates not going up is a bad thing for anyone who is lucky enough to have money in savings.
 

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Discussion Starter · #5 ·
I recognize the words you are saying but not together in a sentence like that....
*blink* *blink*
So, for those of us who do not follow such things (let's pretend that's me)

Is this a good thing or a bad thing?
Overall, one general consensus is that the global economy is undergoing the growing pains of a very slow recovery. Sort of like potholes along an 8 lane highway, it's advisable to proceed slowly and with caution for the unexpected.

Good or bad, it's all a matter of how you interpret the facts, and from what angle.

From a consumer mortgage interest rate perspective, the current state of the global economy is putting pressure on the Bank of Canada to hold it's prime interest rate steady. That is good for people who are in variable interest rates because the prime rate is currently low. Those people will be able to benefit from that outlook.

The current state of the global economy is also causing banks to hold their fixed rates low at the moment. Close to all time lows in Canada. The abundance of news of economic uncertainty in Europe as well as a dim outlook for the US economic rate of recovery, is causing Canadian financial institutions to be very quick to increase their rates at the earliest sign of a change to the outlook. However, despite that, we have also seen a very eager decrease of fixed rates from Canadian institutions to remain competitive in a active and relatively healthy domestic real estate market over the past 2 years.

:)
 

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Discussion Starter · #6 ·
At a basic level, the rate not going up is a good thing for anyone with variable mortgages, or looking to buy soon.
I agree with you.

It is also good for the real estate market, which gains or loses activity/momentum depending on lending costs.
Lending costs is a large part of the real estate market, but increasingly so in the GVRD is demand and affordability.

However, the rates not going up is a bad thing for anyone who is lucky enough to have money in savings.
Time to invest in fish! ;)
 
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