Economists and investors expect Governor Tiff Macklem and his officials to keep the benchmark overnight rate unchanged at 5%. A pause would mark only the third time in 13 meetings that the central bank hasn’t raised borrowing costs. But most analysts think the bank is done hiking.
Failing to maintain a hawkish bias risks a repeat of January, when Macklem became the first Group of Seven central banker to declare a conditional pause. Markets quickly priced in future rate cuts and Canada’s housing market rebounded as financial conditions loosened. The labor market is loosening — job vacancies are falling and the unemployment rate continues to tick up — and the housing market has slowed.
Canada’s highly indebted households have likely burned through most of the excess savings they accumulated during the pandemic. For homebuyers or borrowers, there are few places to turn for relief. Five-year yields have risen around 95 basis points since late January, a substantial dent in purchasing power for mortgage holders renewing at fixed rates. Canadians with variable-rate mortgages are already feeling squeezed.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada expected to hold rates steady as economy stallsAnalysts expect the central bank will keep its benchmark interest rate at 5 per cent Wednesday
Source: globeandmail - 🏆 5. / 92 Read more »
S&P/TSX composite posts loss Tuesday ahead of rate decision, U.S. markets also lowerTORONTO — Canada's main stock index moved lower as investors await an interest rate decision from the Bank of Canada Wednesday, while U.S. stock markets also posted losses. The S&P/TSX composite index was down 131.60 points at 20,413.76. Energy stocks and battery metals moved higher, while telecom, utilities and base metals led market weakness. The Bank of Canada is set to announce its latest rate decision on Wednesday. The central bank is widely expected to hold its key rate steady, but the que
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
No need for the Bank of Canada to raise rates again: CIBCBank of Canada does not need to raise its interest rate again but it might anyway. Watch CIBC economist Benjamin Tal on the economy
Source: fpinvesting - 🏆 43. / 63 Read more »
No need for the Bank of Canada to raise rates again: CIBCBank of Canada does not need to raise its interest rate again but it might anyway. Watch CIBC economist Benjamin Tal on the economy
Source: financialpost - 🏆 7. / 85 Read more »
Ontario Premier Doug Ford calls on Bank of Canada to halt rising interest ratesFord says instead of higher interest rates, he wants the federal government to work with provinces and territories to invest in critical infrastructure projects that will create higher-paying jobs and improve the production of goods and services.
Source: CBCNews - 🏆 2. / 99 Read more »