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US Federal Reserve increases interest rate by 0.75. BoC, it's your move
June 15, 2022
12:13 pm
JohnnyCash
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Not entirely surprising as the US Fed hinted to the markets yesterday that they were considering 0.75%. So, what's the likelihood of the BoC doing anything different on July 13?

It will be interesting to watch the GIC and HISA offers as they start pricing in a 0.75% increase next month.

June 15, 2022
12:17 pm
cgouimet
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I wonder if BoC will wait 4 weeks for its next move so as to keep the $ steady...

CGO
June 15, 2022
1:50 pm
AllanB
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They have a history of bailing out stocks and real estate. I feel this time it has to be different or the inequality bubble will grow so large eventually leading to a real depression style collapse where they can't save anyone. In Greece squatters took over apartments to live in.

June 15, 2022
2:07 pm
Dean
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JohnnyCash said

Not entirely surprising . . . 

Actually, it was a Big Yawn ... and hardly even considered Newsworthy.

It would have been News had they only gone to +0.50%, but they didn't.

July will also likely bring another 0.75% Fed increase, and maybe even
the one after that, as well.

Plan according,

    Dean

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

June 15, 2022
2:23 pm
savemoresaveoften
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Dean said

JohnnyCash said

Not entirely surprising . . . 

Actually, it was a Big Yawn ... and hardly even considered Newsworthy.

It would have been News had they only gone to +0.50%, but they didn't.

July will also likely bring another 0.75% Fed increase, and maybe even
the one after that, as well.

Plan according,

    Dean

  

Its pretty done deal BoC has no reason NOT to go 75bps in July.

June 15, 2022
2:32 pm
mechone
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Now watch our dollar fall as the US rate is .25% ahead of us

June 15, 2022
4:20 pm
Dean
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savemoresaveoften said

Its pretty done deal BoC has no reason NOT to go 75bps in July.  

Mark your calendars ... July 13th will tell the tale

.
Dean

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

June 15, 2022
5:23 pm
Alexandre
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There is a possibility BoC is not going to be as aggressive as US Fed: we don't have November midterm elections.

June 15, 2022
6:04 pm
AllanB
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Alexandre said
There is a possibility BoC is not going to be as aggressive as US Fed: we don't have November midterm elections.  

If they don't homeless encampments will move to empty condo buildings

June 15, 2022
6:56 pm
cgouimet
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Alexandre said
There is a possibility BoC is not going to be as aggressive as US Fed: we don't have November midterm elections.  

A lower rate in Canada vs US could mean lower Cdn $ which would be good for exports but could drive import prices up; fuel too. More inflation is not what we or BoC want ...

CGO
June 15, 2022
7:14 pm
agit
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BOC will increase by 0.75% there is no ifs and buts

and maybe 1.00% why ........ "Inflation has surprised to the upside this year and further surprises could be in store," Federal Reserve chair Jerome Powell said at a press conference following the decision.

June 15, 2022
7:44 pm
savemoresaveoften
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Alexandre said
There is a possibility BoC is not going to be as aggressive as US Fed: we don't have November midterm elections.  

Historically, US election usually result in the Fed being more market friendly, as in keep rates low etc. you have it the other way round.

June 16, 2022
7:14 am
Alexandre
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savemoresaveoften said

Historically, US election usually result in the Fed being more market friendly, as in keep rates low etc. you have it the other way round.  

That is going to come back after November, I think. The business as usual. Unless inflation runs completely out of control.

How it looks now, the ruling party in the US could face complete annihilation in midterms, unless they do something about inflation.
BoC does not have such strong political pressure from the Canadian government, currently.

June 16, 2022
9:48 am
Dean
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.
Reminds me of back when Rump (typo intended) was president ... he openly tried to tell the Fed how to do it's job (cuz he knew better), and threatened to Fire them if they didn't heed his bidding.

Scary and kind of funny, at the same time. sf-confused

    Dean

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

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