The Dark Side Of Low Interest Rates

Posted on September 12/2012 by

There is a cost to low interest rates. Just ask savers pondering the merits of the Royal Bank’s so called “high interest” e-savings account, a typical offering in Canada. The rate: 1.2 per cent. For U.S. dollar savings, the return is positively microscopic, only 0.25 per cent. As markets await the results of Thursday’s policy-setting meeting from the U.S. Federal Reserve Board, more easing of interest rates is the widely expected outcome.

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