Tuesday, June 1, 2010

Canada Raises Interest Rates, Canadian Dollar Tumbles

Confirming predictions and their own projections made over a year ago, the Bank of Canada has raised interest rates by 0.25%, to 0.50%. as a result, those with variable rate mortgages and loans will be paying more.

It is unlikely that such small move will puncture the real estate bubble in Canada. This would only happen if rates would continue to go higher in the future. However, nothing in BoC statement suggest further raises.

Perhaps this is only of the reasons that the Canadian dollar has tumbled more than 1% today in pre-market.

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