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November 17, 2022
5:26 am
savemoresaveoften
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This is why 5y GIC is sticky even with expectation for more interest rate hike and inflation still high and sticky right now. Second time 5y bond yield gets to the 3.80% ish yield level, its quick to retreat. Professionals just dont believe inflation will stay elevated for extended period of time (2y+)

5y-bond-chart.jpg

November 17, 2022
5:35 am
cgouimet
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In the not too distant future, inflation will be 'near' the 2% target, and we'll be complaining that prices aren't dropping but GIC and HISA rates are ...

CGO
November 17, 2022
6:33 am
agit
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Fact - and just ignore the noise

CNBC

Fed’s Bullard says rate hikes have had ‘only limited effects’ on inflation so far

“the policy rate is not yet in a zone that may be considered sufficiently restrictive.”

“To attain a sufficiently restrictive level, the policy rate will need to be increased further,”

There’s little if any dissent on the Fed over whether rates need to continue to rise

Bullard’s presentation argued that 5% could serve as the low range for the where the funds rate needs to be, and that upper bound could be closer to 7%

November 17, 2022
6:55 am
mordko
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Pretty sure there are different “professionals” with different opinions.

It is true that Mr Market as a whole expects inflation to be brought under control. There is, as always, a risk that Mr Market got it wrong.

November 17, 2022
7:07 am
savemoresaveoften
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mordko said
Pretty sure there are different “professionals” with different opinions.

It is true that Mr Market as a whole expects inflation to be brought under control. There is, as always, a risk that Mr Market got it wrong.  

Yes Economists got it wrong all the time, CB got it wrong all the time, Mr. Market got it wrong and then adjust to where new market sb. Unfortunately Mr Market got it wrong does not equate to banks paying up for GICs. 5y GIC is priced as a spread to 5y GC, and that "spread" is where banks adjust to accommodate demand vs supply. Smaller institution's natural spread is wider as the spread adjusts for credit quality too.

November 17, 2022
9:18 am
Fogoguy
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mechone said
Just got our car insurance renewals no claims or tickets up 500 between myself and wife. PP is right the federal government borrowed 700 billion that has now fueled inflation. Now the interest payments on that 700 billion on top of the 600 billion of debt will bury Canada in cuts and taxes  

Just renewed my insurance a few days ago, and was shocked to learn that my premium had DROPPED by $459. I don't understand it, but certainly not complaining! (yes, the coverage is the same as before)

November 17, 2022
10:54 am
Dean
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.
Interesting CTV News vid & article about the recent inflation, both here and in
the other G20 countries. Make sure you check out the graphs & charts in
the article . . .

.
Be glad we don't live in Argentina or Turkey ... WOWsf-surprised

    Dean

sf-cool " Live Long And Prosper " sf-cool

November 17, 2022
9:41 pm
Vatox
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Dean said
.
Interesting CTV News vid & article about the recent inflation, both here and in
the other G20 countries. Make sure you check out the graphs & charts in
the article . . .

.
Be glad we don't live in Argentina or Turkey ... WOWsf-surprised

    Dean

  

Yeah! That 75% interest rate in Argentina is nuts.

November 22, 2022
6:34 pm
agit
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New Zealand delivers its biggest rate hike ever 75 basis point hike, the biggest rate hike ever in the central bank’s history.

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