Do You CARE?
The dismal worldwide economy crisis since last year is rather depressing; there’s no sign of recovery just yet.
The Bank of Canada made an announcement yesterday that the lending rate is slashed to a historic low of 1%. This may be good news to home buyers and the real estate industry; since the low mortgage rates boost refinance activity and therefore, helps the housing market. Nevertheless, negative impacts from the economy crisis such as fast-rising of living cost, high unemployment rate, and production shutdown in various industries, leave most people in the state of insecurity and fear.
Canada’s key interest 0f 0.75%, resulted from decision made by the Bank of Canada as of yesterday. The deep dive below the 1% benchmark has been predicted end of 2008. It’s known to be a 50-year low, and maybe dropping further. How pathetic… I joked with friends that we can now keep our savings in the backyard or under the bed just like the old days, since there’s not much we get out of bank interests nowadays :P
If you’re complaining about this, try observing other countries. For example, Japan offers an interest rate of 0.1%, and that of the United States is as low as a big fat zero. Australia and New Zealand, known to offer high interest rates, can’t escape from the fate of interest rate cut down either. Malaysia, on the other hand, has just recently announced a cut of 0.75% in key interest, down to 2.5%; which observed to be the largest cut in more than a decade.
Hopefully the recession will come to an end in the near future. Meanwhile, I’m grateful for the provision I’m blessed with, and continue to keep my fingers crossed for a promising future.
Tags: Economy
