RBC waited exactly three hours and 11 minutes to take advantage of the Bank of Canada’s 1/4 point rate hike today. RBC, which is typically Canada’s mortgage rate leader, boostedits prime rate by the same amount, to 3.45%. The other Big 5 banks matched its move within a few hours. Prime Time The new 3.45% prime rate takes effect tomorrow...
Not much to see at today’s Bank of Canada meeting. It was another yawner as prime rate held at 3.20%. Among the few takeaways: The Bank stated: “While higher interest rates will likely be required over time, Governing Council will continue to be cautious…” Interpreted this means: Higher rates are on their way, between now and when we die. If...
If you have a mortgage that floats withprime rate, the constant chatter about rate hikes may be unnerving. Well,now you can take a breather—because the Bank of Canadahas taken a breather. The Bank left rates alone today and hinted that future rate hikes may be further off than economic forecasts suggested. If you had to sum upits announcement today in...
For now, the daysof sub-2% everyday mortgage rates areofficiallyover. Wednesdaymorning’s slightly surprising 1/4-point Bank of Canada hike was the nail in that coffin. The ensuing 1/4-point bump in prime rate will push all remaining mortgage rates above the psychologically key 2% threshold. By next week, the lowest rates shouldjump roughly as follows: Insured variable rates: From 1.89% to 2.14%+ Uninsuredvariable...
In just the latest reminderthat banks valueprofitabovePR, each ofthe Big 5 havehiked prime rate by a full 1/4 point. That means the rate variable mortgages are based on risesto2.95% on Thursday, at most big lenders. Some had speculated (hoped) that banks would liftprime just15 bps to match their last stingy cut in 2015. But this was a “prime” opportunity for...
A quickbriefing on recent mortgage rate developments: Higher Rates on the Radar:The market has now fully priced in a rate hike this year, based on the yieldsof interest rate derivatives. “Clearly this is no longer an economy that requires emergency-level interest rates,” says TD. Both it and CIBC predict the first 25 bps rate bumpin October. But some analysts think...
Variable-rate holderscan sit back in their easy-chair. Prime rate iscemented at 2.70% after the Bank of Canada pushed out itsforecasted economic recovery for the umpteenth time. The Bank said there’s now “heightened uncertainty” in its rate outlook, as if it had any certainty before. It nevertheless hasconsultedits black box models, which purblindly forecast 2% growth through 2018. Two percent growth...
“Young folks with mortgages regularly thank me for keeping interest rates low.“ —Bank of Canada Governor, Stephen Poloz In fact, Mr. Poloz’s decisions to keep rates low have practically been made for him, by serially disappointing economic data. Monetary policy has merely reacted to what he terms “a steady decline in the potential growth rate of the economy.” The...
Another Bank of Canada rate meeting has come and gone with no shift in prime rate. Here’s pretty much the only line in the Bank’s 421-word statement worth repeating: “On balance, risks to the profile for inflation have tilted somewhat to the downside…” Deciphered, this means: The Bank is closer to droppingrates than raising them. And it could take multiple...
Yesterday’s Bank of Canada Decision: Roses in a Weed-patch You’ve got to hand it to Bank of Canada head Stephen Poloz. He’s remained as optimistic as a dog before dinner. The problem is, the BoC’sundying economic optimism doesn’t jibe with itsrepeated cuts to Canada’s growth outlook. The BoC wants to stay positive because negativity doesn’t help recoveries. It wants us...
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