The Bank of Canada will come out with their latest interest rate announcement at 10am eastern or 11am here in the Maritimes. While many of us are expecting at least a 75bps increase to the overnight lending rate, the real meat and potatoes will be in the press release from the meeting.
The devil truly is in the details, as the fourth quarter monetary policy is also announced today. The Bank will give details on whether it thinks that the current and past rate increases are doing what they were supposed to do and if more are necessary. While it is true that the overall inflationary rate is decreasing, it is just not coming down fast enough. It decreased by .1% to 6.9% this month, while the target rate is 2%. We still have a ways to go to get there.
Many economists are predicting a recession for 2023 and more rate increases will defiantly be pushing us in that direction. What we don’t know is the length or severity of the pull back to our economy and other major economies as well. We need to proactively cut back our discretionary spending before spending cuts and job losses are thrust upon us. What the Bank of Canada is doing is beyond our control but whether we decide to eat out or make supper at home is totally up to us.
Today I am thankful for the chance to connect with friends that I haven’t spoken with in months, new connections with new idea’s to improve my effectiveness and helping people see the best way forward.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here