19 August 2011
“The Canadians can be sure that our country is able to withstand the global economic challenges, because we have done it quite successfully in the past,” – Mr. Flaherty said. He also gave another commitment to eliminate the budget deficit by 2014-2015.
Mr. Carney noted that the central bank will be “very prudent concerning the possible withdrawal of any degree of monetary stimulus”. Michael Gregory, senior economist at BMO Capital Markets, believes it can mean longer commitment to low rates.
“It seems that negative external factors that we’ve seen before started to grow,” – Mr. Carney said. “But some of them are realized now as temporal financial strains in Europe“.
In this situation variable rate holders and potential borrowers have a chance to enjoy low rates for a longer period of time.