5.1 percent wage gains and 27,000 jobs were reported today. Both figures were known well in advance of the rate decision. The viability or what viability the Bank of Canada had left is now gone. The yield on the 5 year Bank of Canada bond rate spiked more than 3 percent today well above the day before the rate decision was made. If the decision was made by the Bank of Canada its amazing Tiff still has a job after today's jobs and wage gains report.
Exactly. We are already at 1.37 usd/cad. We don't need this right now. Historically, the USA does NOT cut rates at ALL in an election year. If we cut again this year, the road to 2.00 usd/cad will be cleared up. This will completely devastate the economy as many businesses rely on product from the USA.
RE in Canada is eff'ed..... rates go up yet prices in Vancouver still go up..WTF? Takes 12 years to save for a reasonable DOWN PAYMENT for an average family home (not to purchase a home). Healthy markets and economies go up and go down. RE has gone up...up..up. RE here needs to CRASH to go back to sanity. Trudy speaks nonsense and says, "we must maintain RE value for Canadians because it is the cornerstone for retirement for Canadians". Yet he says we are in a housing crisis and young Canadians cannot get into the RE housing market and we need have affordability.
In Vancouver it takes the locals about 2 lifetimes to save up a down payment and then at age 160 or 170 they still get turned down for a mortgage because they don't have a job because they retired.
I think it is a mistake, historically interest rates were pegged at around 6%. There is a cost to money, it is not free, as what happened in the recent years. Banks charge interest to borrowers, if you have cash in any form, held by institutions, you should be compensated for their use I hope this is not the start of another cycle of lowering rates to nothing
Not to mention in the past interest rates in Canada were always higher than interest rates in America. The poloz charactor sho9uld be in front of a judge for cutting our interest rates lower than American's. That's where the nightmare for savers and retirees began.
Remember they cut rates too early in the Volcker era and the second wave of inflation was much greater than the first. In Canada the infaltion rate will end up like Argentina's if the Bank of Canada rate isn't hiked into double digits. Inflation is already about 12 percent and headed for several hundred percent.
@parkerbohnn inflation 12% where did you get the data from? Interest rate above 10%!! and those who paying 3000 at a rate of 2 % will have to renew at a rate of about 10000!! That will take canada into deep recession and within months the rates will be 0%.Dude even if the inflation get to 50% there is a hard limit BOC can raise the rate to because the mortgages are on 5 year terms here. Argentina and other countries are completely different they can even raise the rates above 100%.
@parkerbohnn inflation 12% where did you get the data from? Interest rate above 10%!! and those who paying 3000 at a rate of 2 % will have to renew at a rate of about 10000!! That will take canada into deep recession and within months the rates will be 0%.Dude even if the inflation get to 50% there is a hard limit BOC can raise the rate to because the mortgages are on 5 year terms here. Argentina and other countries are completely different they can even raise the rates above 100%.
The best thing to do if you're a saver or retiree is move to Mexico where the bank rate is 11.25 percent. Yes you can get an honest return on you money in Mexico.
Correction half a point too low as the Bank of Canada rate was half a point lower than the Fed funds rate. Remember the interest rates in Canada were always higher than in America for more than 200 consecutive years running. Of course if the 1980's definition of inflation didn't change the rates would be around 20 percent today with 20 percent inflation.
I dont care. I charge in usd and export products manufactured in Canada. Canada needs to start producing more so we have the income to offset the exchange rate
Thank you for the new video! The rate cut is nice bit of good news. Maybe not a big deal right now, but like you said it could be the start of a happier trend. If I'm understanding correctly, TC Energy will remain a natural gas company while South Bow will specialize in oil pipelines. For each share of TC Energy investors own, we'll also receive 0.2 South Bow shares.
@@epictetus3406 As someone who owns many properties, mortgage free. If you are the majority of Canadians that have a mortgage. You DO NOT want lower rates. Lower rates to me right now will only increase buyers in the market and increase bidding wars, driving prices higher. Which in turn only benefits property investors like me. I would expect this rate cut to increase properties 10-20%. I have a place for sale right now in Brighton, ON. It's got 5 bids on it and will probably sell for over 120k over asking. In short. We have not seen enough real estate deflation to support a rate cut. But hey. Put more money in my account, BoC. If interest rates stayed up and lowered home prices correctly, I would have retired years ago. This is a huge failure on the liberal government to lower rates right now. It should have at least held steady until after the USA election, as the USA historically never cuts rates during an election year.
@@epictetus3406 True, but interest rates are not going to materially affect Canada's productivity. We've been declining in productivity for years and it has more to do with Canadian culture than interest rates. Having more gambling activity in housing is not going to improve productivity.
@joe97nsx you're right, the interest rates aren't the sole reason for the poor productivity but they are one more barrier that affects. Just like the interest rates aren't the sole reason for poor productivity they are also not the sole reason for the housing crisis. Yes lower rates won't improve the housing situation but higher rates won't solve it either. If I had to choose between high house prices and the economy crashing I'd pick high prices.
@@epictetus3406 Government creating inflation via cheap money is not production. Depending upon the government to manage a market is near Communism. Government should stay pat and let the market correct the wrongs of government mis-management. Let the bad companies fail and good money and ingenuity will pick up the pieces= Capitalism.
A rate cut typically means lower borrowing costs, which can be beneficial if you have loans or mortgages. It often leads to lower interest rates on new loans and mortgages, making it cheaper to borrow money.
This 0,25% is a kiss on the bobo for stupid mortgage howner. THERE WILL BE A REALESTATE CORRECTION. If some people bough the fact that the BOC rate could stay at 1% for many years then they deserve to loose the right to borough by going bankrupt.
