Tag Archive for: Rate Announcement

Rate Announcement Jan 2023

The Bank of Canada did what many had predicted by increasing the overnight lending rate by .25% or 25 basis points. However it is their language in the press release that is providing some optimism going forward. This is key part “expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases.” They also said that they expect that CPI inflation will come down to 3% this year and back to 2% in 2024.

While nobody wanted another rate increase, at least it was only 25 basis points and that going forward they expect to hold the rates where they are unless demand on goods and services proves much more bullish than currently projected. If this happens then they are prepared to increase the rates yet again. However knowing that it does take 8-10 months for the effects of the rate increases to work their way through the system, let’s hope that this last one does the trick.

By the way the next meeting for the Bank of Canada is March 8th so mark your calendars.

Today I am thankful that this could be the last of the rate increases, a tune up from my physiotherapist what just what my body needed and my girls looking out for each other away at university.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

The Fine Print

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.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

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

BOC Rate Announcement

The Bank of Canada meets today and will publish their latest policy on interest rates. Most economists are widely expecting a 75 basis points increase similar to what the Federal Reserve did in the US just recently. If this does happen it will be the largest rate increase in over 26 years. Which many believe is required to finely bring our sky high inflation under control.

With the announcement today that the US CPI numbers just hit 9.1% for June which is a 40 year high, it is almost assured that we will have an oversized rate increase.

Well the BOC just exceeded everyone’s expectation by increasing the overnight lending rate by 100 basis points to 2.5%. This as a result will increase the prime lending rate from 3.7% to 4.7%. So those with variable rate mortgages or lines of credit will have their payments increased for the next month. In the policy announcement they BOC stated that CPI has remained high ( in the 8% range) due to the war in Ukraine &supply chain issues that have yet to be resolved.

In the published announcement BOC indicated that this may not be the last of the rate increases and it will depend on the state of the over all economy and how inflation reacts to these changes. The next scheduled meeting is September 7th.

Today I am thankful for my daily motivational quotes my friend Shane sends me on a daily basis, a hill run when I didn’t want do it and date night with my wife last night.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

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