Chapter 7 blog

http://www.vancouversun.com/news/Bank+Canada+keeps+interest+rate+unchanged/4600848/story.html

summery : 


This article is about the bank of canada keeping its interest rate at 1.00% and there would be no increase in the interest rate. The central bank boosted its outlook for 2011 GDP growth by a half-percentage point and signalled economic slack shrank faster than anticipated. This is good news for everyone with a mortgage. However the bank of canada is unsure when the interest rate might go up. Canada's overall inflation is set to rise to 3 % in the coming month.

connections: 

This article is related to chapter 7 because it talks about chartered banks and bank rates. the charted bank in this article are borrowing money from the bank of canada because interest rates are low. the bank rate is the rate of the rate of interest paid by chartered banks on money borrowed from the bank of canada. The canadian interest rate will determine the economic growth of a country. 

reflection: 

interest rate staying at 1.00% is a huge advantage for mortgage holders. Also if people want to buy houses right now it's a good time because interest rate is so low. however they are disadvantages about this our saving account interest rates would decrease. if interest rate for saving accounts were low then people would stop saving money and start spending even more money.