Mark Carney to give ample notice of any interest rate hikes
Bank of Canada governor Mark Carney is promising that he will be transparent about any moves the bank makes to raise interest rates in the future.
In a recent speech, Bank of Canada Governor Mark Carney promised transparency regarding the bank's decisions going forward. The Bank of Canada has announced they are yet again leaving their interest rate at 1%, but are hoping to address the uncertainty Canadians are feeling.
The bank has left it's benchmark rate at 1% for 2 years now, but talk has hovered around raising rates since April of 2012, in the hopes of taming what was feared to be an emerging housing bubble. New mortgage regulations, implemented in July, are believed to have achieved this effect.
Carney stated that raising interest rates was a "hypothetical question," but a solution that is not yet being ruled out by the bank. "The bank provides as much certainty as it can in the conduct of monetary policy," stated Carney. "While we obviously cannot determine events over which we have no control, we can be transparent about what we expect and how we would react to different scenarios." Carney also spoke about the effects of the global economy crisis on Canada, stating that the financial system in Canada is "among the most resilient in the world through crisis."