March 14, 2013
According to the Latest Report from RBC Economics, Investors are Looking on the Bright Side
With the MCSI World Stock Exchange up by about 6.5% this year and the Dow Jones hitting all time highs investors are definitely looking on the bright side of things. The American economy is picking up and the Euro zone has gone from bad to less bad you would think that there may be some pressure on inflation or to, maybe, raise rates in the near future but this is not the case. You may have noticed the the TSX (Toronto Stock Exchange) has been quite flat with no real good gains or bad losses. There is quite a bit of drag on the Canadian economy right now with the last 2 quarters barely squeaking out a gain. There's also mixed news on commodities and employment. A surprising 51000 jobs were created in the last employment numbers for Canada. All this uncertainty is leading the Bank of Canada and now RBC Economics to delay any chance of a rate increase until next year. This is good, of course, for us borrowers whether for mortgage financing or any other loans and lines of credit you may have.
Read the attached report for detailed info on these subjects as well as the current forecast for a rate rise.