A recent article from Canadian mortgage lender, First National, discusses the fact that conventional wisdom is what happens in the States happens here in Canada; but is this still the case?
See the full article below:
"It is conventional wisdom that if you want to know what is going to happen in Canada you watch what is happening in the United States.
Lately all the talk in the U.S. has been about interest rates. Both the Federal Reserve and the Bank of Canada have wanted to raise rates for some time and the Chair of the Fed says the case in favour of a hike is stronger. However, during her speech at the annual central bankers’ gathering in Jackson Hole, Wyoming, Janet Yellen offered no notion about when that might happen.
The U.S. Fed has three more policy meetings scheduled before the end of the year, in September, November and December and there are those who speculate there could even be two increases in that time. It seems unlikely though. With the presidential election, sluggish growth, sub-optimal employment and inflation below its 2.0% target, the Fed is not under a lot of pressure to move as fast as some of the hawks might like."