PrefBlog

A spokesman for the Minister of Finance has indicated that the long-predicted recovery may be delayed:

In our most recent Monetary Policy Report, in July, we said that our current policy rate setting of 0.5 per cent was consistent with the economy returning to full capacity toward the end of 2017 and inflation returning sustainably to its target. We’ll update our forecast next month, but in our decision on September 7, we indicated that the risks to our projected inflation profile have tilted somewhat to the downside following recent data on investment in both the United States and Canada, and the recent data on our exports. It is quite evident that our economy is still facing strong headwinds, and we need stimulative monetary policy to counteract them and move us closer to full capacity. We also need to watch the full effects of the government’s fiscal stimulus unfold.

However, the decline in the real neutral rate means that any given setting of our policy rate will be less stimulative today than it was a decade or two ago. The current policy rate, while certainly providing monetary stimulus, is not as stimulative as it would have been before the crisis.

Many will be overjoyed at this marketing scheme from Investor’s Group:

Investors Group will be discontinuing the deferred sales charge (DSC) purchase option for its mutual funds effective January 1, 2017. At the same time, fees on no-load (NL) funds will be reduced.

This entry was posted on Tuesday, September 20th, 2016 at 9:46 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.