Jan. 28, 2015 | Nolan Matthias
Swings in economy are to be expected
Last week, the Bank of Canada surprised some Canadians when it lowered the overnight lending rate from one to 0.75 per cent.
However, the decision to lower interest rates should not have been as big of a surprise as it was, nor should the fact that the banks have failed to lower their respective prime rates.
On the day before the rate drop, I told two separate groups of real estate investors – totaling 60 people – that, in my opinion, there was as good of a chance that rates would decrease as there was they would increase. The next morning, the Bank of Canada proved me right.