| All rights reserved. |
www.montreal-immo.com
Facing to a threat of recession in U.S, the word's largest economy and a Canadian largest
export market, the Federal Reserve is expected to cut its interest rate of a half point to 2.5
percent by its next meeting on March 18, according to the median estimate of 72 economists
polled from March 5 to March 10 and a Bloomberg survey.
The U.S economy slowdown is showed by the under projected growth rate in January following
a trade deficit widened to 59.9 billion from 58.8 billion the prior month caused byan increase in
the costs of imported oil outpaced gain in exports. Increasing demand from overseas in one
factor still supporting growth.
Rising fuel price, shinrking payrolls and falling home values will weaken consumer spending and
the U.S Federal Reserve has no other alternative than cut its current interest rate in order to
combat the downsize risk to the economy.
We are expecting the interest rate will be lower at 2 percent through December 2008.
Regarding Canada, which is partially in perfect positive correlation with the U.S economy, the
country's economy grew slower than expected with a pace of 0.2 percent, a lowest rate since
2003.
The Bank of Canada cut the interest rate by a half of a percentage point from 4 percent to 3.5
percent in February and next cut is scheduled for April 22 as further monetary stimilus from
Canadian government.
Andy Pham
export market, the Federal Reserve is expected to cut its interest rate of a half point to 2.5
percent by its next meeting on March 18, according to the median estimate of 72 economists
polled from March 5 to March 10 and a Bloomberg survey.
The U.S economy slowdown is showed by the under projected growth rate in January following
a trade deficit widened to 59.9 billion from 58.8 billion the prior month caused byan increase in
the costs of imported oil outpaced gain in exports. Increasing demand from overseas in one
factor still supporting growth.
Rising fuel price, shinrking payrolls and falling home values will weaken consumer spending and
the U.S Federal Reserve has no other alternative than cut its current interest rate in order to
combat the downsize risk to the economy.
We are expecting the interest rate will be lower at 2 percent through December 2008.
Regarding Canada, which is partially in perfect positive correlation with the U.S economy, the
country's economy grew slower than expected with a pace of 0.2 percent, a lowest rate since
2003.
The Bank of Canada cut the interest rate by a half of a percentage point from 4 percent to 3.5
percent in February and next cut is scheduled for April 22 as further monetary stimilus from
Canadian government.
Andy Pham