Economic impact of divergence between BoC and U.S. Fed

Tiffany Wilding, managing director and economist at PIMCO, joins BNN Bloomberg to discuss central banks and their paths going forward.
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[@JessT-vg7ib]

The rates should be so low they should be negative.

[@parkerbohnn]

Buy gold, U.S. dollars and Mexican Pesos to hedge a 50 cent Canadian dollar. Canada is history.

[@snnamagh6007]

if 25 pip divergence make a huge economic impact, we are already in trouble!

[@vinhhuynh1774]

Rate cut won't help much; Canadian dollar will drop which bring cost of goods up; plus on top of the Carbon tax, not making any significant different.

[@rafial81]

Yes more inflation is coming enjoy 😂

[@Captain0Newman]

Rates are not high from a historical perspective... inflation will bounce back as these cuts come into effect... and rates will have to increase again... at a time when we have historic levels of debt... this is madness

[@jays5926]

Canada is in a tough place because our failing economy needs inflation . But if we lower rates then asset inflation will soar again.
We need to tax income less and assets more . But no politician will be willing to fight for the young and give the finger to the asset owning boomers

[@TelosBudo]

These economists have a fiduciary responsibility to their bank's shareholders and bsnk executives. Grain of salt when calling on BoC to cut. Cheap money is king for fee-based money managers

[@jays5926]

100 cuts? Can you be any more ambiguous

[@Stormshfter]

Food inflation will be minimal over the summer growing season since we produce most of our own fruit and vegetables.
Once the fall comes around and theirs been another cut or 2 it will hit hard as the US is our only source.
If they cut the overnight rate below 4.5 they are taking a big big gamble on the US also cutting by years end.

[@MR007-r3f]

Real estate is set to go past the moon.

[@parkerbohnn]

Certainly in the Chinese cities it is.

[@zinithin-8208]

The interest rate drop is premature, most likely they will have to reverse. Housing prices are still absurdly high and by design by municipalities hungry for money. Housing needs at least a 25 to 40% reduction to become affordable and lowering interest rates is giving the wrong signal to the housing market. Housing is one of the largest inflationary forces we have right now, people will be demanding higher and higher wages due to the excessive housing prices.

[@LTADI]

How about dont bring too many people you can't house and build more and leave interest rates low so people could afford to live. Higher rates only hurt average Canadian

[@parkerbohnn]

@@LTADI Retirees and savers need higher interest rates because no one should be forced to move to Mexico to get double digit returns in interest on your money.

[@LTADI]

@parkerbohnn in a debt based economy you can't have high rates

[@zinithin-8208]

@@LTADI sure you can, it just has to be a debt based economy that’s invested into things that actually produce wealth. Your stick house is a non-productive asset and ultra low interest rates have promoted a misallocation of resources, like bidding up asset prices. It’s an unhealthy economy.

[@LTADI]

@@zinithin-8208 you won't get tha with liberals