Categories for Bank of Canada

Bank of Canada Cuts Rates Again

The Bank of Canada has slashed its key rate for the third time this month, using what many think are its last rounds of monetary policy ammunition.

Fed Shocks Market With Sunday Emergency Rate Cut

The world’s most powerful central bank has slashed its main interest rate by one whole percentage point. This is the U.S. Federal Reserve’s largest emergency cut in its 100+ year history. The move is a desperate bid to keep money markets functioning and stimulate borrowing and economic activity. Malls, restaurants, bars, factories, sports seasons, schools, international borders and even Vegas casinos are...

No Word on Prime Rate + Other Major Mortgage News

Our Big 6 Banks chose not to announce their prime rates following Friday’s surprise Bank of Canada rate drop. Instead, people in a floating rate mortgage or HELOC must wait to learn how the BoC’s move will impact their budgets. Banks could take a few days or more than a week. This isn’t unheard of. Back in 2015, when the...

Bank of Canada Makes Emergency Rate Cut

The Bank of Canada has made an unscheduled emergency rate cut for the first time since the 2009 financial crisis. Today, it dropped its overnight rate half a point to 0.75%, its second 50-bps cut in nine days. In a statement, the BoC said: “It is clear that the spread of the coronavirus is having serious consequences for Canadian families,...

Negative Interest Rates. An Increasing Probability for Canada

Canada could see government interest rates below zero for the first time in history. That’s not a prediction, but it’s a real possibility. The probability of recession has surged from the coronavirus pandemic and oil market collapse. The Bank of Canada has just 125 basis points of rate-cutting left before it hits zero. That is insufficient ammunition to fight the...

Canada’s Prime Rate Drops to 3.45%

A lot of folks out there were skeptical that the big banks would show borrowers love and pass along the full Bank of Canada rate cut. Us included. But banks showed they still have a heart and did us right. RBC led the charge by slashing its prime rate 50 basis points to 3.45%. The rest of the bank herd then...

Bank of Canada Cuts But Will Prime Follow?

Amid a global growth scare, the BoC has slashed Canada’s most-watched rate for the first time in almost five years. “…The COVID-19 virus is a material negative shock to the Canadian and global outlooks,” the Bank said in its statement today. Despite how concerned the bank is about fuelling more debt, it chopped its overnight target by 50 bps to...

Fed Delivers Emergency Rate Cut. Bank of Canada on Deck

The rate market just witnessed a rarity. The U.S. Federal Reserve has suddenly slashed its key interest rate by 50 bps. The last such “emergency rate cut” happened in 2008 during one of the worst recessions of all time. This pretty much cements a Bank of Canada rate cut by tomorrow. “With markets now pricing in a full 25 bps...

BoC Rate Cut Now Fully Priced in for April

The global viral crisis is proving incredibly fluid. Traders have suddenly and drastically altered their expectations of how the Bank of Canada will react to this exploding economic threat. At the time this is being written, the market is predicting a 68.3% likelihood of a BoC cut next week. It’s fully pricing in a cut by April 15. Source: Bloomberg...

The Door is Open to Rate Cuts, Says BoC

The popularity of fixed mortgage rates in 2019 was unmistakable. But the Bank of Canada may have moved the needle for variable rates with its comments Wednesday. Below are the week’s top 10 statements from the BoC, all of which will be of interest to any serious rate watcher. The below quotes come from Bank of Canada Governor Stephen Poloz...