Sometimes a Reminder is needed.

Dean

AlainJF said
I was really surprised to see some GIC rates going down in the past few days, especially Meridian, who lowered all of their GICs.

Have we hit the top of the hill?

Is this related to some new events or news (ex: NVDIA)?  

If you read the KPMG outlook which was in the media yesterday - it said things like
- Canada is facing a gradual and bumpy recovery over the next couple of years
- Business is not as good in Canada as in the USA
- Growth is expected to be tepid and subpar
- etc.

I do not see any case for GIC interest rates to rise in Canada - I would not be surprised if Canada even goes into a mild recession. Also, I do not think the recent Federal Budget does anything much that will improve the Canadian economy. Yes there is lots more spending, but growing deficits, growing debt and growing interest on the debt.
House sales and prices are down so what is the incentive for FIs to pay higher GIC rates when they may not need the funds for less growth in mortgages.

Time will tell . . .

Dean

Have we hit the top of the hill?

Is this related to some new events or news (ex: NVDIA)?

NCC1701Z said

All the rates here look about the same as before  

It depends . . .

Some GIC rates changed, and some not so much. Some FIs decided their GIC rates needed to change (due to their own internal circumstances), and some didn't.

Welcome to the normal Ebb & Flow of GIC rates.

Dean

NCC1701Z said
All the rates here look about the same as before  

GIC and mortgage rates often change prior to the actual BoC rate announcements because the FIs anticipate or predict which way the trends are going. If you look back to the summer GIC rates, you will see that they are generally lower than they are now, but have increased gradually without any BoC rate increases, in anticipation of a later increase, which we have now gotten. It kind of follows that old financial adage, "buy the rumour, sell the news." By the time the new rate is announced, the increase has already been priced in. Of course, the BoC could sometimes surprise the market, resulting in a more reactive rate adjustment.

NCC1701Z said
All the rates here look about the same as before  

Did the 1 year Tbill yield change which is what 1 year GICs are loosely based on?
https://www.bankofcanada.ca/ra.....ll-yields/

I don't see much change in the past week

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hwyc said
Installment Savings Promotion 5%

驚人的

For Stocks, Corporate Bonds, ETFs, HISAs, GIC Purchases and GIC redemptions before 11:00 a.m. ET, the settlement guideline is the trade date plus 1 business day (T+1).

So for a GIC purchased today before 11am ET (Sept 30th), it would be paid for and settle Oct 1st and mature Oct 1st 2027 if a business day, or the first business day thereafter. The specific GIC information details would likely be posted in one's BMO IL account on Oct 2nd.