Bank of Canada Rate | Page 11 | General financial discussion | Discussion forum

zgic said

@smayer97: So you think S&P will hit 5K again before going back to 6K or above?  

This thread is about the Bank of Canada Rate, and its corollary, the Fed rate.

There seem to be a lot of rabbit trails. Can we stick to just that topic here?

Bill said

Incorrect reading of what I was implying, Dean.

If we, like almost everybody else, are pretty much irrelevant to behemoth USA it never made sense to base our entire economy on being so reliant on them, easy and apparently obvious as it was to do that. Long time ago policy makers should have realized that was a big risk, to essentially be an economic vassal to the world power, and should have made sure we developed significant trade with other countries around the world as well.

Nothing wrong with trading with USA where it's to our advantage, where it makes sense to cherry pick the obvious and good stuff, as RetireEd indicated, but it's always wrong to be as completely dependent as we are on any one country IF we claim to be more than a branch of that country, claim to be an independent state.  

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Dean

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Maybe 'Yes' ... Maybe 'No' ⬆

This coming Wednesday will tell for sure.

Dean

In case anyone is still wondering, it has been clear for a while that the rates are not going to change at the next meeting; no room in the market at ATM.

Market has already spoken... and for quite a while now. 😉

smayer97 said
Like I said...  

Rates are already ultra low. Why would anyone have any expectations of them to go even lower?

Dean said

Say What⁉️

The BoC's present rate (@ 2.75%) is 'Faaar' from ultra low❗

If you check the BoC 25yr rate history, you'll find that their rates have been as Low as 0.50% ... ⬅️ That would be considered 'Ultra Low'.

Dean

  

BOC rate was as high as 16% so yeah 2.75% is ultra low. Anything below 4-5% is ultra low. Everything above 10% is high.

MattS said
What’s the long-term 25-50year average? Are we currently above or below that long-term average?
For myself, I find the cost to borrow money and go into debt is still particularly cheap, which is the number one reason we’re headed for a huge shaking of the tree.. money that was too cheap distorted asset prices and the cost of taking big risks. I think money’s priced too low myself.  

BoC Averages ...

1990-2025 ... 3.2%

2000-2025 ... 2.1%

2010-2025 ... 1.6%

2020-2025 ... 2.6%

MattS said
What’s the long-term 25-50year average? Are we currently above or below that long-term average?
For myself, I find the cost to borrow money and go into debt is still particularly cheap, which is the number one reason we’re headed for a huge shaking of the tree.. money that was too cheap distorted asset prices and the cost of taking big risks. I think money’s priced too low myself.  

We can see that the rates are ultra low because the assets prices like RE are hyper inflated.

cgouimet said

I haven't collected it but if you decide to find it yourself, feel free to share ...  

Not quite but comparable.
The highest mortgage rate in Canadian history was 21.75% in August 1981 for a 5-year fixed mortgage.
The 1970s Mortgage Rate Range: 10.25% - 13.25%
The 1980s Mortgage Rate Range: 10.00% - 21.75%
The 1990s Mortgage Rate Range: 6.60% - 13.25%
After that the ultra low rates came and prices became hyper inflated.