Bank of Canada punishes diligent millennials for saving money

OTTAWA, ON – Young Canadians who developed the responsible habit of saving money as they entered adulthood received another several major blows in March as the Bank of Canada lowered the overnight rate to 0.25%.

Governor of the Bank of Canada, Stephen S. Poloz, announced measures that included the Commercial Paper Purchase Program (CPPP) and that the Bank will acquire Government of Canada securities on the secondary market.

The Bank’s efforts to ensure the availability of credit by providing liquidity to help markets function has the unintended consequence of punishing those diligent, young savers.

Mr. Poloz was overhead near the end of his most recent briefing stating that young Canadians who came of age during the 2008 financial crisis through the current COVID-19 pandemic must learn the important lesson that debt is your best friend.

Analysts have concluded that young savers who entered the workforce in the last 8 years and chose responsible, safe securities such as GICs, have likely made tens of dollars in interest over the period.

Meanwhile, irresponsible spenders have enjoyed a false sense of security with very low interest rates on increasingly large amounts of debt.