RSM100Y1 Lecture Notes - Lecture 8: Canadian Dollar, Management Accounting, Financial Accounting
31 Mar 2016
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Document Summary
When interest rates are low people get more mortgages and use that to buy more houses leading to an increase in housing prices. Bank of canada may cut interest rates, people may borrow more money, people may make riskier investments, people might go into more debt, canadian dollar may fall. Lowest since 2003, travels more expensive, imports, foods and vegetables are more expensive, expected to go up 5% this year. Could boost manufacturing sector, maybe not until 2017, could affect monetary policy in an interest rate cut. Banks concerned if they"ll get their money back from the energy industry. Oil trading at a 12 year low. Since oil is bought in canadian dollar and it is cheaper our dollars aren"t being bought as much because our dollar is so low. Opec members are producing much more oil, canada is also not demanding as much oil but producing our own.
