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Email this12:52 pm
December 22, 2022
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The Bank of Canada is set to announce their next interest rate decision tomorrow. Will they hike 25 basis points or will they continue to pause? The latest data showed an uptick in inflation and the jobs numbers were also very strong. Economists believe another hike is inevitable for June or July. I believe they will choose to hike sooner than later in order to keep inflation down.
If they do hike tomorrow we may soon see some 5.25% savings promos and 1yr GIC offers.
7:27 am
November 7, 2014
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For those of you who haven't heard, yes, the bank rate is up 25 points!
7:27 am
February 7, 2019
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The Rock said
The Bank of Canada is set to announce their next interest rate decision tomorrow. Will they hike 25 basis points or will they continue to pause? The latest data showed an uptick in inflation and the jobs numbers were also very strong. Economists believe another hike is inevitable for June or July. I believe they will choose to hike sooner than later in order to keep inflation down.If they do hike tomorrow we may soon see some 5.25% savings promos and 1yr GIC offers.
4.75% 25 minutes ago and no GIC changes yet!
| CGO |
8:37 am
November 3, 2022
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cgouimet said
4.75% 25 minutes ago and no GIC changes yet!
It looks like EQ raised their rates this morning! 
8:47 am
November 18, 2017
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I often wonder why tax increases are not used to slow inflation instead of interest rate increases. After all, they'd hedge the government against inflation instead of filling the coffers of lenders. And they wouldn't have such uneven mortgage rate consequences on homeowners. Anyone familiar with the arguments?
RetirEd
RetirEd
8:52 am
July 19, 2022
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Rail Baron said
It looks like EQ raised their rates this morning!
That's surprisingly quick, banks usually drag their feet after a hike...
9:08 am
February 7, 2019
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Rail Baron said
It looks like EQ raised their rates this morning!
And so they did ...
| CGO |
9:38 am
January 12, 2019
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Rail Baron said
It looks like EQ raised their rates this morning!
tobyz28 said
That's surprisingly quick, banks usually drag their feet after a hike...
Unless they're 'Hungry' for more funds.
Apparently, EQ is.
- Dean
" Live Long, Healthy ... And Prosper! "
9:56 am
April 27, 2017
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RetirEd said
I often wonder why tax increases are not used to slow inflation instead of interest rate increases. After all, they'd hedge the government against inflation instead of filling the coffers of lenders. And they wouldn't have such uneven mortgage rate consequences on homeowners. Anyone familiar with the arguments?
RetirEd
Several problems.
Firstly, housing inflation is a major concern in Canada. Prices were allowed to run amok in 2020-21. That eventually pushes overall inflation up. So, hurting mortgage borrowers is unavoidable.
Secondly, taxation could hypothetically suck money supply out of the economy but only if the extra tax isn’t fed right back into economy. Which our government will be tempted to do based on record. They have not prioritized debt repayment.
Thirdly, raising taxes can disincentivize production and increase shortages. Causing more inflation.
Of course inflation tends to increase taxes anyway, which people notice less than government declaring higher tax rates
9:56 am
February 7, 2019
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Dean said
tobyz28 said
That's surprisingly quick, banks usually drag their feet after a hike...
Unless they're 'Hungry' for more funds.
Apparently, EQ is.
Dean
They must be hungry, 2nd increase in a week
| CGO |
10:07 am
November 7, 2014
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cgouimet said
Unless they're 'Hungry' for more funds.
Apparently, EQ is.
Dean
The institutions often adjust rates prior to the BoC announcements based on what they feel the announcement will be. Sometimes they are actually correct. The broker GIC rates likely have the current increase already factored in.
10:50 am
March 30, 2017
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tobyz28 said
That's surprisingly quick, banks usually drag their feet after a hike...
They drag their feet cuz there is zero incentive to them to pay more interest.
As for tax hike to tame inflation, that is just a bad idea. Why punish everyone including the savers ? Interest rate policy should target borrowers / spenders while encourage people to save. That is exactly why higher interest rate makes sense, higher tax rate does not.
11:48 am
October 27, 2013
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1:01 pm
October 26, 2022
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EQ did just raise the one year GIC from 5% to 5.1%. They seem to be the first as the BOC announcement had just happened. But shouldn't they have raised to 5.25%?
I will wait a few days. what do you think?
2:14 pm
December 22, 2022
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HigherRate1 said But shouldn't they have raised to 5.25%?
I will wait a few days. what do you think?
I think they will after other banks eventually raise to 5.25%. We should see 5.25% offers in the coming weeks.
2:29 pm
April 6, 2013
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RetirEd said
I often wonder why tax increases are not used to slow inflation instead of interest rate increases. After all, they'd hedge the government against inflation instead of filling the coffers of lenders. …
Tax increases can fight inflation. It really doesn't matter if there's $100 less each month to spend on restaurants and renovations because of $100/month higher taxes or $100/month higher debt payments.
But, using tax increases is harder to do politically because the government folks who would have to approve the tax increases have to face re-election from the people hit with the higher taxes.
In contrast, the government folks who approve higher Bank of Canada interest rates don't have to face re-election from people paying the higher lending rates. The banks who collect the higher loan payments also don't have to face re-election either.
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