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.