Post by
BayWall on Nov 06, 2024 2:28pm
Interest Rates
I think it's an overaction to Trump's victory. Despite all the pre-election talk and promises, nobody really knows how things will pan out.
And if the 10% tariffs are applied worldwide, should not interest rates fall in other countries? Tariffs will slow down growth and inflation in those countries. Maybe we missed something? Strength of US dollar.
Lower Canadian dollar may add to the cost of wind turbines and solar panels. The electricity exported to the US will be cheaper for the US. Build offshore here and export like Nova Scotia has ideas about.
Anyway.
For now, the pace of interest rate decline will slow in Canada.
In terms of interest rates, the Bank of Canada may have to "tread more carefully" with its own rate cuts to avoid too large a divergence from the U.S. central bank, which could put downward pressure on the Canadian dollar. (The Canadian Press)