For the American's that don't know. In Canada our banks won't give you a 25 or 30 rate.
We typically renew our rates every 5 years, while still amortizing our mortgages over 25-30 years. So rate adjustments tend to hurt more than they do in the US.
Our overnight rate is now 3.25% so we're a bit ahead of our neighbor to the south.
And our equivalent to the dot plot suggests no more rate raises this year, though we do have a chance for one more in December, but unless our inflation rate jumps again, we're probably done until the US catches up to us.
I guess I should note that the new 3.25% rate is 25bps above what the BOC considers to be the neutral rate.
Our two year rate( the one I tend to think is the most important) is currently trading around 3.62% which is up, while the 10 year hasn't really budged, indicating that the markets think we may be close to the end of rate hikes.
Our inflation rate "falling" to 7.6% in July from 8.4% in June also suggests that rate hikes are starting to work.
We're in a weird not often seen situation where we are seemingly heading into a recession with full employment and high inflation and already high interest rates(by recent memory) while also having high debt levels for both individuals and businesses.
The BOC( and US FED) have been pretty clear which side they'll come done as they have constantly said inflation is job #1, so people with debt will be feeling pain for along time to come
We typically renew our rates every 5 years, while still amortizing our mortgages over 25-30 years. So rate adjustments tend to hurt more than they do in the US.
Our overnight rate is now 3.25% so we're a bit ahead of our neighbor to the south.
And our equivalent to the dot plot suggests no more rate raises this year, though we do have a chance for one more in December, but unless our inflation rate jumps again, we're probably done until the US catches up to us.
I guess I should note that the new 3.25% rate is 25bps above what the BOC considers to be the neutral rate.
Our two year rate( the one I tend to think is the most important) is currently trading around 3.62% which is up, while the 10 year hasn't really budged, indicating that the markets think we may be close to the end of rate hikes.
Our inflation rate "falling" to 7.6% in July from 8.4% in June also suggests that rate hikes are starting to work.
We're in a weird not often seen situation where we are seemingly heading into a recession with full employment and high inflation and already high interest rates(by recent memory) while also having high debt levels for both individuals and businesses.
The BOC( and US FED) have been pretty clear which side they'll come done as they have constantly said inflation is job #1, so people with debt will be feeling pain for along time to come