Well with all the articles lately from the Bank of Canada governor which are leaning to more optimism for 2010 many economists are now predicting on March 3, Carney will only drop rates by .25%.  This guy can’t win really.  If he is too negative people will roast him, and if he is too positive people say he is not doing enough.

The truth is, he has done great things, with being the first to drop rates, and be at already an unprecedented negative interest rates (interest rates are currently lower then inflation) and most importantly injecting real usable money into the system by purchasing good mortgages from the banks, he is part of the solution.

As to predictions, I like to go against conventional wisdom sometimes and agree with the lone economist Derek Holt at Scotia Capital that we will still see a .50% cut as there are still real problems for 2009, and the bank has said repeatedly they do not fear inflation until at least 2011.

This entry was posted on Tuesday, February 17th, 2009 at 7:52 am and is filed under Forecast of Mortgage Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.