Loading ...Higher for longer — and maybe forever: Bank of Canada deputy says ultra-low rate days may not return
Canadians expecting a return to the ultra-low rate environment of the last decade and a half may be sorely disappointed, noting the rock-bottom rate environment in the wake of the Great Financial Crisis was an outlier, not the rule.
That means Canadians hoping to wait out the storm may be waiting a long time — if it happens at all.
“It’s early though, and the effects of higher interest rates are still working their way through the economy. We’ll need to keep a close eye on both credit stress indicators and survey data to gauge how businesses and households are adjusting.”
Yes, I wouldn’t count on short-term interest rates coming down sharply anytime soon.
We could even see one or two more rate hikes by the U.S. Fed. going forward.
Also, current long term interest rates appear to be way too low to attract bond investors.
Long-term T-Bond yields are heading higher.
See this link for historical U.S. Fed Funds interest rates going back to 1954:
https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
See this link for historical U.S. 30-year T-Bond yields going back to 1977:
https://www.macrotrends.net/2521/30-year-treasury-bond-rate-yield-chart
The Japanification of the US Financial System……..