canada drops interest rates | General comparisons | Discussion forum

doc said

Canada drop interest rates. how is going to affect interest rates at banks

Interest rates will go lower at the banks - in particular for mortgages, savings accts, GICs etc. etc.
2015 will likely be a good year for the stock market as interest rates go lower.
The US economy is doing okay - US does not need Canada's oil and gas - but hopefully Canada will benefit from manufacturing exports and a low CAD dollar.
I think the Target Canada closing and layoffs is not a positive - increase to unemployment numbers and empty commercial space.
Canada's recovery has been very slow even before oil and gas collapsed - so likely interest rates are going to be low in Canada for the foreseeable future.

agree - things not good at present and likely get worse for Canada as the Cdn oil & gas industry weakens. Note that European Central Bank has "unleashed" a more aggressive quantitative easing program through to Sept 2016. Seems deflation is a possible threat there.
Our central bank is concerned that Canada could go back into recession. Apparently the banks are not lowering interest rates (as yet) on mortgages and loans so people won't be tempted to take on more debt. It will be interesting to see if savings and GIC rates are reduced. I would guess that they will be reduced if /when negative economic stats come out each month.