08-Apr-2011

ECB

Global Interest Rates

+ European Central Bank increased interest rates by 25 bps to 1.25%; the first increase since 2008. This is the 1st time in 40 years that the European rate has risen before the US.

+ China increased interest rates for the 4th time since October and 2nd time this month, trying to fight inflation.

+ India, Poland, and Sweden have all raised interest rates in recent weeks.

+ Stefane Marion, NBF chief economist, is expecting Canada’s first interest rate increase in July.

Tidbits

+ Royal Bank is looking to sell its US consumer banking business after losing money for 10 straight quarters.

+ If elected, the Tories would double the contribution limits for TFSA’s – once the budget is balanced around fiscal 2015 – 2016.

+ Worldwide exports jumped 14.5% last year, the largest recorded increase since 1950. WTO expects world trade to grow by 6.5% this year, beating the 6% average rate between 1990 and 2008.

+ McDonald’s is planning on a one-day hiring spree of 50,000 new workers in the US on April 19.