Tag Archives: Bank of Canada

Elephant In The Room – Interest Rate Variable

In all this hype from the media regarding Bank of Canada interest rate decisions, and with the charade performed in front of cameras by sharp dressed smooth talking regulators…..the fact is that a 0.25 “basis” point move is not going to make one iota of difference when chartered banks have been widening the differential between retail unsecured rates and the overnight rate unchecked. Alberta has an “ombudsman” to deal with parties feeling aggrieved by services administered by the province.

From the standpoint of making complaints against the banking system, you would turn to “The Office of the Superintendent of Financial Institutions”. This agency claims to be “independent” and in the context of interest rate policy whereby any party feels aggrieved, this agency will turn to “usury law” in deliberating the matter of any perceived injustice in interest rate administration. Chartered banks still have lots of leeway available to them in the context of widening retail secured and unsecured rates. 

I’m afraid our media is asking the wrong question when facilitating a discussion of the huge headline made yesterday over at the Business News Network, “Canadians Drowning In Debt As 47% Struggle To Cover Costs: MNP”.