Anyone following Bank of Canada governor Mark Carney lately couldn't be blamed for being a bit confused, as the clarity of the Bank's message has left a lot to be desired
Anyone following Bank of Canada governor Mark Carney lately couldn't be blamed for being a bit confused, as the clarity of the Bank's message has left a lot to be desired.
For example, in the lead up to the latest rate announcement, and despite the Bank constantly reiterating that rates would stay at 0.25 per cent until June 2010, speculations were still around that Canada would follow Australia's lead and raise rates, which wasn't the case.
On Sunday, perhaps in an effort to dispel the uncertainty, Carney confirmed that rates would remain where they are well into the New Year. And although he wouldn't say so himself, this seems to be good news for those with variable rate mortgages right now.
"It's not my job to give investment advice to Canadians," he said.
Carney may not be in the business of advising people on their mortgages, but he certainly had a lot to say to Canadians, in general, who are looking at borrowing. In an article from the Globe and Mail called "Carney urges 'prudence' in housing market," he went on record saying that not only should lenders practice restraint in lending, but that potential homeowners should do the same.
"We remind people that borrowing is for the period you are going to borrow, not just for the moment you take out the loan," he said.
That may sound like a veiled warning that rates could indeed go up in the near future, but when coupled with interviews like the one with CTV, as well as when he told Reuters that "2010 is still going to be a year where policy really matters," the picture is even less clear.
What are your thoughts?
