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Email this9:50 am
January 12, 2019
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Expect another +0.50% BoC rate hike on Dec. 7th.
- Dean
" Live Long, Healthy ... And Prosper! "
9:56 am
September 11, 2013
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I prefer a conservative approach, takes a while to see the effects so slow and steady is the way to go rather than overshoot, took awhile to get into this and so patience is needed to get out too. One major political leader is already saying enough is enough so political pressure is becoming an element in this.
9:56 am
September 7, 2018
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lifeonanisland said
Cowardly move by Macklem. The band-aid needs to be ripped off.
Likely there was some (behind the scenes) influence by the Minister of Finance because the Fed Govt is under pressure - Canadians are very unhappy with rising interest rates, inflation and ever-increasing cost of living. The BoC/Fed Govt are betting inflation may have started to stabilize and may show a bigger decline on next calculation.
The stock market today is likely interpreting that inflation and interest rates may be stabilizing and that is why the BoC made a lower than expected interest rate increase. That is positive news for the stock market.
I do not see "the band-aid being ripped off" - unless the next inflation calculation is worse.
10:10 am
December 12, 2021
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Bank of Canada Press Releases
"Given elevated inflation and inflation expectations, as well as ongoing demand pressures in the economy, the Governing Council expects that the policy interest rate will need to rise further"
The Bank of Canada reiterated that it estimates the nominal “neutral rate” for the economy to be about 4.5 per cent. That is in line with where markets were expecting rates to peak early next year. 4.25% by the end of 2022
still on target
10:10 am
April 27, 2017
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This is the kind of thing that seems huge because market’s expectations have not been met but will look like a whole bunch of nothing in rear view mirror. Still, creates a little excitement before Nov 2nd. Will US central bankers go for 0.75?
11:11 am
March 15, 2019
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Watched Phil Soper (CEO Royal Lepage) interviewed on TV at noon.
Basically, he said that the carrying cost of a house now is the same as before the rise in interest rates. House price is lower but that is offset by higher mortgage rate.
11:16 am
January 12, 2019
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dougjp said
And the stock market goes wild - BofC rate ONLY up 1/2 of 1% ! Will reality set in tomorrow....
The day is only a little more than half over, and the 'Enthusiasm' on the TSX has already started to wain.
That didn't last long. 
- Dean
" Live Long, Healthy ... And Prosper! "
5:45 pm
January 28, 2015
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I can tell you one thingthe BOC has made a big mistake . The US fed will make a big move next week putting Canada behind . Watch the dollar fall and inflation go way up as more canadian dollars will be needed to buy goods . The market was expecting .75%
6:22 pm
March 30, 2017
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mechone said
I can tell you one thingthe BOC has made a big mistake . The US fed will make a big move next week putting Canada behind . Watch the dollar fall and inflation go way up as more canadian dollars will be needed to buy goods . The market was expecting .75%
We will know within the next 12 months whether today’s move is right or wrong. The message he sends today by going 50 instead of 75 is that the CB is easing off on the inflation fighter gas pedal, as he prepare for a complete stop (rate hike wise) over the next few months.
The professional traders respond by buying up bonds 2 yrs and out, pushing yielding down 20bps+ in a single day.
It’s an exciting day for rates traders on the trading floor for sure.
Of course if inflation remains sticky, he has more meetings to go 50 a clip to get to whatever level is needed to trigger a severe recession to kill inflation quickly. He gets to keep his job no matter what…
8:18 pm
April 27, 2017
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Interesting times… Inflation has been going down because oil prices went down. Why was that? Because US has been releasing strategic reserve. That won’t go on forever. And Russian supplies will reduce. And China will come out of Covid and start consuming more oil. So, oil prices will go up and that will push the inflation up. Interest rates have quite a bit further to go unless a recession or UK-style financial problems hit the markets first.
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