“[Canada’s] policy rate will need to rise to neutral to achieve our inflation target.” That was the headline-making quote yesterday from Bank of Canada boss Stephen Poloz. Speakingin front of the parliamentary finance committee, he repeated what the BoC’s been saying for over a year: “Our estimate of neutral is in a range—currently 2 ½ to 3 ½ per cent....
If you’re carrying floating-rate debt, the rate lords at the Bank of Canada have just added to your interest burden. Here’s what the BoC just did and what it means to your wallet: Rate Decision:Canada’s key interest rate rose 25 bps today Prime Rate:Should climb to 3.95% within the week Market Rate Outlook:3 more hikes by year-end 2019 (as of...
The Bank of Canada has issued its latest rate verdict. Here’s a breakdown of today’s announcement: Rate Decision:No change to the overnight rate Prime Rate: Also no change. Prime remains at 3.70% Market Rate Outlook:One more hike this year plus two more hikes next year. The market is not fully pricing in the next BoC rate increase until December. BoC’s...
If low rates are a yard party, the Bank of Canada has just turned up the lawn sprinklers. Here’s a rundown of what they just did: Rate Decision:They increased the overnight rate 25 bps Prime Rate:Should jump to 3.70% this week Market Rate Outlook:2+ more hikes by year-end 2019 BoC GDP Outlook: “Average growth of close to 2% over 2018-2020″...
The market is betting on rates heading higher this Wednesday. That’s bad news for mortgage shoppers. Or is it? One could argue that a rate hike on July 11 makes the fixed or variable rate decision even easier. Essentially the Bank of Canada is doing mortgage shoppers a favour. Here’s why… Closer to the Finish The higher rates go, the...
Love it or hate it, Canada’s controversial mortgage stress test has led to one welcome benefit: bigger mortgage discounts. That’s due partly to slowing demand for B-20-compliant mortgages—i.e., mortgages that require borrowers to pass the banking regulator’s “stress test,” which was adopted in January. In its latest Senior Loan Officer survey, the Bank of Canada writes, “Mortgage approval rates continued...
Here’s the latest on today’s Bank of Canada rate announcement: Rate Decision:No change in rates Prime Rate:Remains at 3.45% Market Rate Outlook:Two more hikes in 2018 BoC GDP Outlook:2% growth in 2018 and 2019; 1.8% in 2020 BoC Statement:Click here The Money Quote: “…Developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep...
It turns out, we weren’t sniffing glue by arguing that 47% of mortgages are not up for renewal this year. “Some pundits have been circulating inaccurate information recently,” National Bank Financial (NBF) said in a report Thursday. “One is the affirmation that almost half of Canadian mortgages have been or will be up for renewal this year, suggesting an imminent...
Here’s the quick and dirty on Wednesday’s Bank of Canada announcement: Rate Change:None Market Rate Outlook:Two more hikes in 2018 BoC GDP Outlook:2% growth in 2018 and 2019; 1.8% in 2020 BoC Statement:Click here The Money Quote: “…Higher interest rates will be warranted over time…Governing Council will remain cautious with respect to future policy adjustments…” Next Rate Meeting:May 30, 2018...
Your interest rate burden got no heavier today. The Bank of Canada gave floating-rate borrowers a breather by leaving its policy rate at 1.25%. Holding the Bank back were theseconcerns: NAFTA “uncertainty” “Slower than expected” Q4 GDP growth Weaker than expected “wage growth” Canadians’ “sensitivity to higher interest rates” Household credit growth that’s dropped for “three consecutive months.” Inflation, which...
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