The rate market just witnessed a rarity. The U.S. Federal Reserve has suddenly slashed its key interest rate by 50 bps. The last such “emergency rate cut” happened in 2008 during one of the worst recessions of all time. This pretty much cements a Bank of Canada rate cut by tomorrow. “With markets now pricing in a full 25 bps...
The global viral crisis is proving incredibly fluid. Traders have suddenly and drastically altered their expectations of how the Bank of Canada will react to this exploding economic threat. At the time this is being written, the market is predicting a 68.3% likelihood of a BoC cut next week. It’s fully pricing in a cut by April 15. Source: Bloomberg...
The popularity of fixed mortgage rates in 2019 was unmistakable. But the Bank of Canada may have moved the needle for variable rates with its comments Wednesday. Below are the week’s top 10 statements from the BoC, all of which will be of interest to any serious rate watcher. The below quotes come from Bank of Canada Governor Stephen Poloz...
Canada’s rate-setter left its key rate untouched today while striking a less-than-cheery chord on the country’s outlook. Here’s a quick take on this morning’s Bank of Canada rate decision: Rate Announcement:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% (seePrime Rate) Market Rate Forecast:One rate cut in 2020 BoC’s Headline Quote: “…Governing Council will be watching closely to...
The Bank of Canada ended 2019 where it ended 2018, with prime rate frozen at 3.95%. Here’s a summary of the Bank of Canada rate decision this morning: Rate Announcement:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% (seePrime Rate) Market Rate Forecast:One rate cut in 2020 BoC’s Headline Quote: “Future interest rate decisions will be guided by…the...
Canadian government bond yields, which lead fixed mortgage rates, are essentially adrift at sea. They, like so many other global yields, seem to just be biding time until positive (or negative) trade news breaks out of Washington. There’s so much uncertainty out there that it makes even less sense than usual to try and time the market. When President Trump...
Central banks around the world have been cutting rates. But, so far, the Bank of Canada has avoided joining that club. One of its worries is that lower interest rates would reignite the mortgage and housing markets, adding to Canadians’ already toppy debt loads. Deputy BoC Governor Carolyn Wilkins reiterated these concerns in a speech yesterday. “You’ve heard us say...
The Bank of Canada said today that it’ll keep coasting on rates. But the market isn’t so sure. Investors think our central bank may have to cut sooner than some expect. Here’s a summary of this morning’s decision: Rate Announcement:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% Market Rate Forecast:One rate cut in 2020 BoC’s Headline Quote:...
The U.S. Federal Reserve and Bank of Canada seldom make rate announcements on the same day, but tomorrow will be an interesting exception. No one expects any fireworks, but if you believe market expectations, the Fed will cut its key rate 1/4 point while the BoC does a whole lot of nothing. If it all plays out accordingly, it’ll be...
Canadian mortgage rates follow U.S. rates like spring follows winter. So today’s U.S. Federal Reserve rate cut is most relevant indeed. The Fed chopped the floor for its key target rate by 25 bps today to 1.75%—the same as the Bank of Canada. It’s the second cut in 49 days, but only the second cut since 2008. As usual, the...
log in