October 27, 2017
The Bank of Canada did increase its key interest rate on September 6, 2007 to 1.00% from 0.75%, the second time this summer. It appears that the message the Bank wishes to give is that the economy is strong enough that it does not require stimulation. The US Federal Funds Rate is 1.25% and analysts predict a quarter point rise in December. The core inflation rate continues to average at a moderate rate of approximately 1.7% although in the US the rate from month to month in September was an increase of only 0.13%. The Fed’s target is for increases of 0.2% every month, or 2.4% annualized. The global economy continues to be firm with growth in Japan and the US being the most evident. Tis seems to be the case for 2018 with a slowing down only appearing in 2019. Oil prices have been firming. It seems that Saudi Arabia is contemplating lower production in order to see higher prices. In America an aging population may very well increase demand in certain aspects of housing and in medical services.