Bank of Canada to chop rates by 1% next year: CIBC World Markets

[CBC News]

A slowdown in central Canada's economy will lead the Bank of Canada to chop its key lending rate by as much as one percentage point by the end of 2007, CIBC World Markets says.

More...

 

[tamarin]

And the cut might be fatter still if recession rears its ugly head. 2007 is gearing up to be a helluva interesting year!

 

[JonB2004]

And the cut might be fatter still if recession rears its ugly head. 2007 is gearing up to be a helluva interesting year!

I know that a recession in the U.S. sometimes causes a recession in Canada, but Canada avoided the U.S. recession in 2001. There is a possibility that we could avoid it this time as well. And they don't want to be cutting interest rates too much because they will start to ignite inflation again.

 

[tamarin]

With so much of the recent housing industry in the US 'under water' there has to be pressure on the fed to reduce rates. And regain some market buoyancy. In Canada we can't ignore that and maintain a high interest rate policy that will artificially inflate the loonie and cause even more harm in central Canada.
The housing bubble pulled the US out of recession. It's also allowed Canadians to pile up ever larger heaps of personal debt as they've remortgaged to live the life 'they deserve and earned.'
You have to hit the wall at some point. I think some folks are starting to get dust up their nose.