prime rate falls to 4.25

[kuba]

http://www.globeandmail.ca/servlet/story/RTGAM.20040120.wrate0120/BNStory/Business/

 

[graham]

timing is everything

 

[Eclectic]

For those of us who aren't "financially aware"....


What does this mean?

 

[Aerius Zension]

I think falls is a bad thing.

Though I might be wrong.

 

[The Tesseract]

I have a feeling that i will be investing in american dollars.
just because the loonie is so high right now... elections are approaching, the american public is likely to vote someone new in, and that will send the US dollar back up

and then i will cash my american bills in and reap the reward...

Yaaaaaah ahahahahahahahahahahahahahah!!!!

 

[graham]

it means that timing is an important factor in any economic decision. To say it's everything is hyperbole, but that should go without saying.

 

[kuba]

to me, this means that borrowing to buy a house is even cheaper now

 

[kuba]

yes, i didnt expect it to fall either, I thought it would go up because supposedly the economy is going up.

 

[OTIS]

it means that all other banks follow.

The increase in value of our dollar can have an adverse impact on our exports.. so we gotta make borrowing money more favourable to offset that part of our economy.

So it's cheaper to get a loan now.

 

[Tonedeff]

Originally posted by mr tall
it means that timing is an important factor in any economic decision. To say it's everything is hyperbole, but that should go without saying.

lol

 

[SneakyPete]

Well it doesn't necessarily mean it's bad. It's good if you're looking to borrow money, get a mortgage, etc. Lowering of the interest rate will likely cause the Canadian Dollar to fall, which also isn't bad. Lower Canadian Dollar increases export, which help the Canadian economy. There's a lot more to it, but that's the basic idea.

 

[LivingRoomPornstar]

Originally posted by qtip
to me, this means that borrowing to buy a house is even cheaper now

only if you take a variable rate mortgage. which could work out well.

What it means to Canada is that business' will also be able to borrow at an even lower rate and it could push growth higher.

Dan

 

[Scarlett]

Originally posted by mr tall
timing is everything

Werd.

I'm going to the bank tomorrow for that long awaited loan that i need.

Things are lookin up

 

[graham]

we need one of those mind-erasing kits.

 

[Soundstream]

Originally posted by LivingRoomPornstar
only if you take a variable rate mortgage. which could work out well.

Which is what I have. Although I prolly won't be smiling so much if it ever skyrockets up to 6% or 7%, hehe.

Cheers ... Ian

 

[Mike Richards]

Originally posted by The Tesseract
I have a feeling that i will be investing in american dollars.

Believe it or not the Low US dollar is also the reason you may notice (DJs) record prices going up. Most of the bigger distributors in North America are in the US. When they buy European imports with their crappy Yankee Greenback they appear expensive but really their own money is what is causing that. And since most record stores in Canada purchase from these distributors they end up getting the butt-end of the bullshit canon!

 

[The Tesseract]

Originally posted by Mike Richards
Believe it or not the Low US dollar is also the reason you may notice (DJs) record prices going up. Most of the bigger distributors in North America are in the US. When they buy European imports with their crappy Yankee Greenback they appear expensive but really their own money is what is causing that. And since most record stores in Canada purchase from these distributors they end up getting the butt-end of the bullshit canon!

[DJ The Tesseract]
aaaaaaaggggghhhh!!!!! shut up!!! nooooooo!!!!

wait... i don't buy shit from stateside. My local record shop buys from Montreal and UK. I'm cool.

*phew*

[DJ The Tesseract]

 

[Mike Richards]

Originally posted by The Tesseract
[DJ The Tesseract]
aaaaaaaggggghhhh!!!!! shut up!!! nooooooo!!!!

wait... i don't buy shit from stateside. My local record shop buys from Montreal and UK. I'm cool.

*phew*

[DJ The Tesseract]

If your local record shop buys from Nice in Montreal then you're already gettin jacked brother!

 

[chipotle]

Originally posted by Eclectic
For those of us who aren't "financially aware"....


What does this mean?

it means that the economy was having trouble due to the exports falling... because our goods become more expensive if the currency is more expensive. So... david dodge had to slow it down... and stop people from investing in our currency... the bank of canada rate is tied into the currency ...so if the rate of return is low less people will invest in our currency and our currency will be worth less and this will help our goods be more competitive ..so that prices will fall and be more competitive with imports from other countries...

the lumber industry was hit the harderst out west..so this was one of the reasons david dodge did this.

furthermore.. the dollar will go up..but bank of canada wants to have more control over the rise of our dollar and doesn't want to rise too fast...because that can catch some producers off-guard.
there is a lot of things that have to be adjusted before prices rise
and producers don't get caught off guard...

 

[adorablehomeboy]

Originally posted by chipotle
...so if the rate of return is low less people will invest in our currency and our currency will be worth less and this will help our goods be more competitive ..

Our dollar increased today. Maybe this cut was expected and already priced in b4 hand.

 

[chipotle]

Originally posted by adorablehomeboy
Our dollar increased today. Maybe this cut was expected and already priced in b4 hand.

but it is down from it's highest point.
which is the point.. to keep it within a certain range.


the highest was 0.79 and it is now at 0.77...still down from the average of 0.78

 

[bitchass]

the prime decrease was anticipated yesturday by mortgage lenders who lowered rates by more than a quarter percent.

the broker that i send most of my clients to is advertising 1year closed mortgages at 3.55% and 5 year closed at 4.9%!

you can also now get 0% down (they give you the cmhc 5% down as a cash back!) at about 6.3% if you qualify

personally, i'm a bit wary of the 0% down because there will be a lot of foreclosures if the markey falters in 5 years and mortgage rates are back up.