Mortgage Logic

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BoC Leaves Key Rate Unchanged Again, Continues High Wire Act

Stephen Poloz, Bank of Canada Governor, announced this morning that BoC’s key rate will remain unchanged for the time being. This was an expected call after Canada’s second quarter economic performance turned out better than expectations and better than first quarter results. There is a tight rope being walked to maintain balance by BoC. On …

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Bank of Canada changes its thoughts from higher rate to lower rate

Today the Bank of Canada (BoC), on their scheduled announcement date, decided to leave their key rate and not change it. They made it clear that there are no more thoughts of raising the rate this year. After taking stock of the past six months in the Canadian economy, they have no choice but to …

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Further Reason Not To Fear Rising Interest Rates

Canada’s income tax rates have become uncompetitive, and the economy will pay the price. Jamie Golombek: High tax rates, which reduce the reward of earning more income, discourage people from engaging in productive economic activity…(read more)

Interest-rate-sensitive U.S. stocks are signaling that bond yields won’t move up any time soon

David Wilson, Stocks Editor, Bloomberg Radio has shown a great chart here that further indicates the lack of upward pressure on interest rates. Renaissance Macro Research LLC created by Michael Guttag, a managing director, Yesterday March 12, 2019. Guttag compared a ratio of bank and utility stocks within the S&P 1500 Composite Index — consisting …

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January 9, 2019 – Bank of Canada Makes No Change to its Key Rate

The Bank of Canada has decided to leave its key rate untouched (at 1.75%) with its announcement today. As expected, their hawkish view on ramping up rates has cooled off. Major FI prime rates will likely stay at 3.95%. The Canadian economy is not performing as expected right now for the following reasons: • Lower …

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Economy Not as Rosy as Bank of Canada Had Thought

Today the Bank of Canada (BoC) decided to hold its key lending rate unchanged. This decision is best summed up by Financial Post’s Kevin Carmichael as follows: “Canada’s central bank took a break from raising interest rates on Dec. 5. The pause could last longer than many were expecting, mostly because policy makers are worried …

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Bank of Canada Takes Advantage of Strong Recent Economic Numbers

The Bank of Canada (BoC) today announced it will increase its benchmark key overnight lending rate by 0.25% to 1.5%, thus likely causing major financial institutions to raise their prime rate by same. The BoC is taking an opportunity to raise the rate now in order that it continue to build its tool chest to …

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