- As the Bank of Canada decided to keep interest rates steady, the prime rate stays at 6.25%. The Bank noted that “there are significant upside and downside risks to the outlook for inflation”, which seems to indicate that the future direction of interest rates is unknown at this point. In its previous meeting in July the Bank had hinted at a “modest future increase”.
- The income trust saga continues. The Liberals are floating proposals such as a 10% tax on trusts refundable for domestic investors and allowing new energy trusts to form.
- A column in The Financial Post suggests that Canadian REITs are trading at roughly a 4% discount to net asset value.
- I had an opportunity to meet other Ottawa area financial bloggers at a local Starbucks last night. In attendance were Larry MacDonald of Investment Ideas Blog and the bloggers behind Canadian Financial Stuff, Canadian Money Blogs Reviewer and Dividends Matter. We chatted for two hours about blogging, finances and adventures in the equity markets and we’ve agreed to meet again.
- Jonathan Chevreau and Rob Carrick offer mortgage advice in their respective columns in The National Post and The Globe and Mail.
- Laura Rowley offers four tips for navigating these choppy markets.
