Bank Of Canada Interest Rates Stay At 0.75% – Was Last Month’s Drop A Mistake?

Analysts were split on the Bank of Canada decision for today, whether they would cut interest rates or not. I expected no rate cut until April. I felt that after the last rate cut Bank of Canada Governor Poloz would wait to see what the effect would be. That will need more than a month for statistics to roll in. Still analysts and rate watchers were split with 50% figuring another rate cut would occur this month.

The decision to hold rates in line strengthened our dollar in an immediate reaction. It was pushed up about 0.6 percent to 80.47 US cents. This was actually a dramatic move as our dollar was lower by 0.40 of a cent earlier in the morning before the announcement.

Trading For Income

For Canadian investors seeking income there are other alternatives aside from GIC’s or strictly fixed income locked in type products that continue to perform well. I hold some capital aside for a few fixed income type ETFs. Two that have done well this year are ZRE and ZLC. The interest rate decisions lately have created more volatility which has definitely helped my returns. I do not hold them for extended periods but trade them often.

The rest of this article is for Canada Members. … read more.

Bank of Canada Holds Rate at 0.75%

This discussion article is for FullyInformed Canada members. FullyInformed Canada Members can login directly through this link or they can sign in to the full members site here. Non-members can join here or read about the benefits of a membership.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.