Canada's Interest Rates remain unchanged at 1 per cent

The Bank of Canada has left the key overnight interest rate unchanged at one per cent, but signals to remove monetary stimulus may become appropriate.  It is also signals that interest rate may rise by the end of the year.


What should we do with the low interest rate environment but anticipate interest rate interest.  If you have variable rate, you should consider to pay off as fast as it can.  Keep the fixed rate mortgage as it will not change the rate during the length of the contract.

Bank of Canada maintains interest rate at 1%

Bank of Canada maintains interest rate at 1% and remain at record low interest for the reminder 2012 calendar year. During these low interest rate , dividend investments are very important to the gain of the whole portfolio. Bank stocks ETF has a good track record of paying dividend out and it is good to include some dividend paying ETF in your portfolio.

Stock Market Environment where Interest Rate is Low

In this market where the interest rate is low. Every income you gain is so important to your overall portfolio performance. The bank interest pays so low just to keep at the bank account. Dividend stocks or funds don't always have to be outside of the registered account because of it's tax friendly asset class.

Encana (ECA) pays good dividend, under $18CND is a good entry point, currently is at around $20.

Shoppers Drug Mart Corporation (SC) pays close to 2.5% dividend, a good stock to invest in an uncertain environment. Currently trading around $40.

Declaimer: I do not own both of these stocks at my portfolio.