It’s been a morning of change for the EU as a surprising decision was made at the 20th economic summit of European leaders. In the most anti-austerity move to date, the ECB is now able to directly fund the banks of nations in economic need – without the restrictions of deficit increase or troika oversight. It’s a move with particular payoffs for Spain and Italy – and a big step back for pro-austerity Germany.
Spain is the latest EU nation to be bailed out – to the tune of 100 billion Euros. While the news caused an increase in investor confidence, what are the implications of such a move for the European economy – and Canada’s as well? Is this a signal that Europe’s financial woes should be increasingly considered a “global problem”?
Government of Canada bonds continue to be attractive to investors internationally and on the home front. What does this mean for mortgage rates? Our Expert Mortgage Rate Outlook Panel discusses the impact of lowered bond yields.