50 point rate hike June 1st 2022 | General financial discussion | Discussion forum

Here's the accompanying statement.
https://www.bankofcanada.ca/2022/06/fad-press-release-2022-06-01/

At this time, they clearly anticipate more inflation, further rate increases - and reaching their 2% inflation target!

It is so darn difficult to sit tight. Right now I have lots of funds just sitting @2.8%, 1.75%, & 1.6% in HISA's as well as many GIC's maturing in the next year and a half. Makes me nervous. I'm going to try to keep my hands tied until around 15-25 of this month, if nothing happens in terms of rate hikes by then, I will probably put something with CWT for 27 months & some others for 24 months.

Alexandra said
It is so darn difficult to sit tight. Right now I have lots of funds just sitting @2.8%, 1.75%, & 1.6% in HISA's as well as many GIC's maturing in the next year and a half.

You might want to consider the Hubert 1-yr quarterly GIC that averages 3.2%. First quarter is 3.05%.
https://www.happysavings.ca/products/terms/one-year-terms/

I'm hunkering down with them until the rates stop rising.

lifeonanisland said

You know there is another rate hike coming on July 13, yes?  

Thanks lifeonanisland. I most definitely am going to wait at least for the most part.
Hopefully in anticipation of the July rate hike, some banks will up their rates before that.

HermanH said

Alexandra said
It is so darn difficult to sit tight. Right now I have lots of funds just sitting @2.8%, 1.75%, & 1.6% in HISA's as well as many GIC's maturing in the next year and a half.

You might want to consider the Hubert 1-yr quarterly GIC that averages 3.2%. First quarter is 3.05%.
https://www.happysavings.ca/products/terms/one-year-terms/

I'm hunkering down with them until the rates stop rising.  

Yes, you are probably right. Why am I so grateful to Tangerine for the 2.8% HISA til end of August anyway?

Alexandra said
It is so darn difficult to sit tight. Right now I have lots of funds just sitting @2.8%, 1.75%, & 1.6% in HISA's as well as many GIC's maturing in the next year and a half. Makes me nervous. I'm going to try to keep my hands tied until around 15-25 of this month, if nothing happens in terms of rate hikes by then, I will probably put something with CWT for 27 months & some others for 24 months.  

Having GIC maturing in the next 6-18 months is a good thing, my friend.
For now just Hubert it like others say. Rather lock in a 1y at 3.6% then keeping in HISA at 1.6% if I were you. the flexibility is not worth 2% in my mind.

Great, next rate increase July 13th

Thanks everyone for looking after me!!

I have very little in the HISA's @ 1.6 & 1.7%. Pretty well all in the Tang @ 2.8%.

Alexandre said

Alexandra said
It is so darn difficult to sit tight.  

Depends what objective you have. If it is akin to "increase shareholder's value," then, yes.

For me, as long as my personal finance software tells me I earn more than I spend month after month and annually, I don't worry much. Also, with rates going up, I am not interested in GICs. I still have few thousand dollars in Tangerine 1.25% GIC I bought just before rates started to go up. It does not bother me much. I think. 🙂  

I'm in a similiar boat, Tang @ 2.8% until the end of August, a bunch of GIC's short term laddered through the next year.

My reason for posting a follow up to your "difficult to sit tight" comment is the dilemma of "trapped" TFSA funds (for lack of a better practical term), where I have $$ funds wiling away @ 1.5% which could be earning 3.7% for 15 months in a GIC. Ie; what does my crystal ball say the blended yield will be, in comparison, as I'm losing in the short term.

Not only the wide gap between HISA and short term GIC rates, but what has the rate change landscape been leading up to, and just after, this BoC rate increase? Almost universal silence by all banks, no change (except immediate prime rate lending increases, natch . So the other side of the coin is, could short term GIC rates of 15 months or less have plateaued regardless of the next BoC rate decision expectations?

Dean said
.
Food for thought . . .

Today's BNN vid & article ➡ https://www.bnnbloomberg.ca/brace-yourself-top-bay-streeter-sees-giant-boc-rate-hikes-ahead-1.1773651

If he's right (and I think he is), best we Hang On To Our Hats ❗

Dean

  

Yes, I saw this too, Dean. And I concur. I enjoyed the naysayers at the end of the piece; essentially pundits with a lot of skin in the game, projecting their fears more than anything. Interesting times ahead. Looking at the stock markets today, I wonder how many are blithely ignoring reality.

Alexandra said

What about doing Motive 2yr @4.2%?   

Except for a strategy of staying as short term as I can with GICs (due to my age plus the interest rate market conditions), that would be a good option IF we were near the end of a calendar year. Counting on EQ to perform a rapid TFSA transfer to another institution, after reading past comments....too much potential aggravation IMO, for what that's worth.

For me, step 1 with any TFSA consisting of GICs is to have their expiries only in the latter months. I learned that by having a TFSA GIC which just came due elsewhere (a bank that has a small transfer fee that would wipe out gains), and so I'm now pretty much stuck waiting 7 months at a lower rate HISA until I can get it out of there.