My apology, was a bit busy. Canada's relatively low bank interest rate on loans is a function of lower levels of consumer demand or WEAK consumer demand for bank loans (whether due to generally low incomes/high debt ratio to earnings etc.) alongside an excess supply of available investment capital/money sitting in the banking system. Massive inflows of foreign investment funds serves to further increase the amount of available investment funds (re: supply of money) available within the Canadian banking system, which ultimately serves to additionally drive down the price of loans as reflected in the regime of falling interest rates. Hope that helps!
Last edited by Caliplanner1; Jul 6, 2017 at 5:05 PM.
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