Interest rate predictions are tough

I found this in a retirment planning post ….

Every year since 2009, experts have predicted that “rates have nowhere to go but up,” only to be confronted with what seems to be perpetually low rates.

Most pundits predict rates will finally start to rise again in mid 2015, but the recent surprise rate cut by the Bank of Canada (from 1% to 0.75%) suggests how futile trying to predict the timing of such a change can be.

Central banks’ zero interest rate policies have resulted in “real” (net of inflation) returns of zero or even less-than-zero after income tax, except for outliers like Russia.

In December, Switzerland even began charging savers for the right to deposit funds!

This post from 2013

http://blog.markherman.ca/2013/07/11/how-low-are-interest-rates-really-here-is-the-big-picture/

Now for the big picture…

Short version: rates are the lowest of all time … like a 496 year low. Is that low enough?

“in July 2012, 10-year yields in the US thus reached with 1.39% the lowest level since the beginning of records in the year 1790.

In the Netherlands – which provide the longest available time series for bond prices – interest rates fell to a 496 year low.

In the UK, ‘base rates’ are currently at the lowest level since the founding of the Bank of England in 1694.

In numerous countries (Germany, Switzerland), short term interest rates even fell into negative territory.”

Mark Herman, Mortgage Alliance, Top Calgary Alberta Mortgage Broker, and #1 mortgage brokerage in Canada for 2013 AND 2014!!!