The Bank of Canada (BoC) is keeping its key interest rate target the same and holding it at 0.25%. They believe that the Canadian economy still requires this low rate even though the economy is doing better than anticipated. The BoC expects economic growth in the first quarter of 2021 to be positive, versus its […]
Bank of Canada Rate Announcement Yesterday – A Tightrope Ahead Read More »
Yesterday the Bank of Canada (BoC) announced that they would “hold current level of policy rate until inflation objective is achieved”. Inflation is at the low end of their target range (1-3%) in recent months. Excess supply is expected to weigh on inflation over 2021, and as it is absorbed inflation is expected to return
In a news releases today Genworth Canada and Canada Guaranty have both confirmed that they will not follow suit with Canada’s main mortgage insurer, CMHC, in tightening lending guidelines for mortgages. Genworth MI Canada Inc. (TSX: MIC) said: “it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit
The Bank of Canada (BoC) just announced an unscheduled Key Rate cut of 0.5% (one half of one percent) in response to the anticipated drag on the economy that will be caused by the Corona Virus (Covid-19). This should immediately affect major FI’s (financial institutions’) Prime rate(s) of interest offered for lending purposes. The new
Unscheduled Bank of Canada Rate Cut – Response to Covid-19 Pandemic, March 13, 2020 Read More »
Today (Wednesday, March 4th) the Bank of Canada (BoC) decided to cut its key overnight lending rate by 0.5% on this scheduled announcement date. Although this move looks to be in line with the unscheduled rate cut made by the U.S. Federal Reserve yesterday due to the impact of the coronavirus on the U.S. economy,
Bank of Canada Cuts its Key Rate – Long Overdue Read More »
The Bank of Canada (BoC) today has announced that it will be holding their key at 1.75%, translating to a prime rate of 3.95% at major financial institutions. The tone of their announcement definitely shows a more dovish tone (meaning a higher likelyhood of reducing the key rate in near future). There are a few
Bank of Canada Announcement Oct 30, 2019 – Dovish Tone Read More »
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
Bank of Canada changes its thoughts from higher rate to lower rate Read More »
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
The Bank of Canada is having to recast its’ projections of a slower economy as thought in the previous two quarters. They had expected a lag in the economy for late 2018 & early 2019 only, but this has changed. A slower economy seems to be with us for a while and there is thinking
Bank of Canada Does Nothing to Rate – March 7, 2019 Read More »
Today the Bank of Canada decided to raise its key rate by 0.25% to 1.75%. It is expected that Canada’s major FI’s will follow suit and raise their Prime rate of interest to 3.95%. Interest rates are still at record low levels and BoC has indicated that it would like to achieve a “neutral stance”
October 24, 2018 Bank of Canada Pushes Key Rate Up Read More »
