Bank of Canada increases overnight rate by 0.50%. Your variable rate mortgage and secured lines of credit will increase.  The tone of announcement is rates need to rise due to inflation.  ‘Quantitative tightening QT’ in effect this month, which means  government no longer replacing maturing bonds on the Bank’s balance sheet. Core inflation now declared […]

Bank of Canada increases overnight rate by 0.25%. Your variable rate mortgage and secured lines of credit will increase.  Increased inflation is the theme of the announcement.  Announcement ends with note on expected future interest rate increases. “CPI inflation remains well above the Bank’s target range. Price increases have become more pervasive, and measures of […]

The Bank of Canada decided to maintain the overnight rate. This means your variable rate mortgage remains unchanged. However, they presented strong language suggesting the rate will need to be increased. The Bank has ‘removed its exceptional forward guidance on its policy interest rate’, which means these emergency rates will need to move. ‘Overall economic […]

Bank of Canada maintains overnight rate. Your variable rate mortgage remains unchanged. The Bank is maintaining its bond buying pace, purchasing bonds solely to replace maturing bonds (“reinvestment phase”). Its assessment of inflation sees little change, expects inflation to remain elevated in the first half of 2022 and ease back towards 2% target in the […]

Bank of Canada maintains overnight rate. Your variable rate mortgage remains unchanged.  The Bank is ending quantitative easing (QE) and moving into the reinvestment phase, during which it will purchase Government of Canada bonds solely to replace maturing bonds. It still states  the economy continues to require considerable monetary policy support.   The Bank backed off […]

Bank of Canada maintains overnight rate. Your variable rate mortgage remains unchanged. Naturally, due to upcoming election, the boat is not being rocked. Status quo message: transitory inflation and recovery still estimated second half 2022. “These factors pushing up inflation are expected to be transitory, but their persistence and magnitude are uncertain and will be […]

Bank of Canada maintains overnight rate. Your variable rate mortgage remains unchanged. Not much change from the last announcement’s narrative. Provided more details about their inflation assessment. “The factors pushing up inflation are transitory, but their persistence and magnitude are uncertain and will be monitored closely.” Bank maintains 2% inflation target expected sometime in the […]

Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, adjusts quantitative easing program. Exact same words as last announcement. Comments on temporary factors for inflation. “There is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy […]

Effective June 1, government increases stress test rate, both for insured (low downpayment) and uninsured mortgages. Translates to a reduction in buying power by approximately 4 to 4.5%. Mad rush to submit offers before deadline, this will be messy. Probably creating even more bumps in prices. Consensus opinion is this does nothing for helping first […]

Bank of Canada will hold current level of policy rate until inflation objective is sustainably achieved, adjusts quantitative easing program. “There is still considerable excess capacity, and the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed. […]