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The Timing of Bank of Canada interest rate announcements and us.
December 20, 2017
12:24 am
Loonie
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Dates for 2018 Bank of Canada announcements are
http://www.bankofcanada.ca/pre.....ng-events/

Jan 17
March 7
April 18
May 30
July 11
Sept 5
Oct 24
Dec 5

Some of you may find this useful in planning your GIC investments. Retail rates usually go up within a month -ish after BoC rates although may require 2 rises to be significant.

Rates are expected to go up a bit next year sometime, maybe more than once. Some think March may be the next date for a rise. Others think summer.

February 11, 2019
12:55 pm
Taxpayer717
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The scheduled dates for the interest rate announcements for 2019 are as follows:

Wednesday, January 9*
Wednesday, March 6
Wednesday, April 24*
Wednesday, May 29
Wednesday, July 10*
Wednesday, September 4
Wednesday, October 30*
Wednesday, December 4

All interest rate announcements will be made at 10:00 (ET)

https://www.bankofcanada.ca/2018/07/bank-canada-publishes-2019-schedule-fad-announcements-release-mpr-bos-slos/

February 11, 2019
5:43 pm
Vatox
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Unless we get much higher inflation, lower debt ratios, solid economic news and or higher oil prices, there won’t be any rate hikes in 2019. There is a possibility for one hike in the summer, if things don’t get worse and an outside chance for two hikes. But anything more requires serious changes and there could even be decreases(I hope not).

At this time, the BoC only has one reason to hike rates and that’s the desire to normalize the overnight rate to neutral. That would be around 3.0%. I wouldn’t see that as a good enough reason alone.

February 12, 2019
8:12 am
hotmony
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Vatox said
Unless we get much higher inflation, lower debt ratios, solid economic news and or higher oil prices, there won’t be any rate hikes in 2019. 

Inflation has skyrocketed in the housing market mortgages and rent sucking up most peoples savings. Debts ahem. Solid economic news / trump u.s. canadas #1 customer. Lower oil prices give boost to the economy.

February 12, 2019
9:23 am
Vatox
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Higher interest rates won’t bring rents down. Higher interest rates are generally a great way to cool the economy and bring down housing cost, but in our current condition, it would be at the expense of the households themselves, as debt servicing cost goes up. It’s a rock and a hard place. I agree that interest rates need to rise, but it’s a very slippery slope right now.

February 12, 2019
9:41 am
Vatox
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We will see what the January inflation report reveals on February 27. November and December came in at 1.7 and 2.0, that’s not high.

February 12, 2019
3:29 pm
Loonie
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Well, FWIW, my car insurance just went up 15% through no fault of mine!

February 12, 2019
3:43 pm
Vatox
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Loonie said
Well, FWIW, my car insurance just went up 15% through no fault of mine!  

That’s not good at all, but I don’t think higher interest rates will fix that particular type of cost increase.

February 12, 2019
9:15 pm
Loonie
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Vatox said

That’s not good at all, but I don’t think higher interest rates will fix that particular type of cost increase.  

True, but every little bit helps!

It was just an example. It seems that all the things you can't do without, like utilities, transportation, and food, are going up significantly and regularly.
I assume this must contribute to the CPI somehow.

February 12, 2019
9:40 pm
Vatox
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Loonie said

True, but every little bit helps!

It was just an example. It seems that all the things you can't do without, like utilities, transportation, and food, are going up significantly and regularly.
I assume this must contribute to the CPI somehow.  

It definitely should and we will see the upcoming report soon.

February 12, 2019
11:33 pm
Vatox
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Transportation is about 19.5% of the CPI weighting and insurance premiums are a component of that and about 2.9%

February 13, 2019
7:26 am
hotmony
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A good indicator rates will tick up again is the stock market is rising. The two generally move in opposite direction.

February 13, 2019
5:23 pm
Vatox
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hotmony said
A good indicator rates will tick up again is the stock market is rising. The two generally move in opposite direction.  

The stock market reacts to an interest rate change and doesn’t influence rate change decisions. The market does generally react inversely when all other factors remain the same.

February 23, 2019
5:07 pm
hotmony
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Vatox is right so far but im standing by my prediction that rates will begin to rise again sooner rather than way later

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