Article emphasizes how Canada’s deepening recession is likely to prompt the Bank of Canada (BoC) to go down into negative interest rates like parts of Europe are already .. the BOC has already hinted that Europe’s not-so-grand experiment in the Keynesian Twilight Zone known as NIRP (negative interest rate policy) may be about to cross the pond – “The effective lower bound for policy rates is around -0.5%,” central bank governor Stephen Poloz said in December, setting the stage for negative rates in Canada .. IceCap Asset Management sees the following scenario:
1. Canadian economy to be in recession in 2016
2. Bank of Canada will be at 0% interest rates in 2016
3. Bank of Canada will be at NEGATIVE interest rates in later 2016
4. Bank of Canada will be PRINTING MONEY in later 2016
Barclays says: “The BoC would need to cut at least 50bp this year to partially counteract the continued slide in crude oil prices .. the BoC would need to cut policy rates by at least 50bp in 2016.” .. The BoC itself estimates that the effective lower bound for Canada could be around -50bp, giving room for further cuts if needed.

link here to the article

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