Low interest rates have encouraged households to take on debt
International bank calls for rebalancing of policy and structural reforms to encourage long-term growth
Consultation papers discuss alterations to BoC’s emergency lending capabilities and market operations
Guidance on interest rates unchanged
Consumer spending a bright spot
There are likely to be bouts of market volatility as stimulus is slowly removed
Craig Fehr, Canadian market strategist for Edward Jones, discusses the U.S. Federal Reserve’s announcement that it will taper its monthly bond purchases by US$10 billion starting in January. He suggests investors position their portfolios to account for stronger economic growth and higher long-term interest rates. He spoke at the TMX Broadcast Center in Toronto.
The measures will remain in place until further notice instead of expiring as scheduled in February 2014
Are BoC governor and Flaherty on opposite sides over use of quantitative easing?
Vice chairwoman Janet Yellen has voted in line with the Fed majority, including current chairman Ben Bernanke