Well I guess this isn’t surprising, with oil falling, weak exports, unemployment neutral to rising, high household debts, interest rates falling, the Bank of Canada is on the defensive with loosening monetary policy, so it’s no wonder why our economy contracted.
The interesting point here is that borrowing money is incredibly cheap here with variable rates on short-term mortgages to be had at around 1.95% for creditworthy borrowers.
Excuse me: 1.95%?????? annual = I really have no words to explain other than WOW!
There must be someone wondering if they could interest rate arbitrage this rate to achieve something higher elsewhere. It can be very profitable if that individual is right. I wonder what those Greek gov’t bonds are offering at this point?
Have a great long Civic holiday weekend!
Live Life better,
The Canadian economy contracted in May, the fifth consecutive monthly decrease, increasing the possibility the country slipped into a recession in the first half of the year.
Statistics Canada said Friday real gross domestic product fell 0.2 per cent in May due mostly to weakness in manufacturing, mining, quarrying and oil and gas extraction as well as wholesale trade.