Carney Warns Low Rates Can't Last

After years of falling interest rates, Bank of Canada governor Mark
Carney warned home owners not to count on continuing record low rates
forever. This seems obvious, especially when you consider that there
really is nowhere to go but up, but we may be a while before we see
significantly higher rates. Our loonie contines to surge, in spite of
both low rates and burgeoning government deficits. As we saw with
Ontario's budget shortfall, corporate taxes have been plummeting this
year. Raising interest rates would put upward pressure on our
currency, and that would have a pretty negative impact on our
manufacturing sector. Throw in increased business lending rates, and
governments have compelling reasons to remain committed to low
interest rates. As an investor, you need to ensure you are taking
advantage of low borrowing rates, and finding alternatives to the
nearly non existent yield from GICs, money markets, and government
bonds. Tune in to Beyond Funds Market Weekly, tomorrow at 9:30 and I
will discuss this issue in more depth.