Categories for Bank of Canada

The Economic Ice Age & Mortgage Rates

Yesterday’s Bank of Canada Decision: Roses in a Weed-patch You’ve got to hand it to Bank of Canada head Stephen Poloz. He’s remained as optimistic as a dog before dinner. The problem is, the BoC’s undying economic optimism doesn’t jibe with its repeated cuts to Canada’s growth outlook. The BoC wants to stay positive because negativity doesn’t help recoveries. It wants us...

Rate Surveillance: Another BoC Non-Event

An Idle Bank of Canada If you forgot about the Bank of Canada rate meeting yesterday, you’re one of many. Nobody made a big deal about it because nobody expected anything earth shattering from Poloz’s lips. The takeaway is that prime rate remains stuck at 2.70% and it could stay that way for months. The Bank did lift its Canadian growth estimate,...

The BoC & Mortgage Rates

No rate-cut drama today. The Bank of Canada left its key lending rate at 0.50% this morning, a move expected by about half the market. Mortgage Impact: Banks weren’t about to cut prime by more than 5-15 basis points anyway (a basis point is 1/100th of a per cent), so this news is not overly momentous for variable-rate mortgage holders—not in the near-term...

The Bank of Canada Countdown

A feeling or state of nervousness or excitement caused by wondering what will happen. That’s the definition of suspense. And that’s what the financial community is feeling right now about Wednesday’s Bank of Canada rate meeting. Will “The Poloz” chop the overnight rate in half, from 0.50% to 0.25%? Or will he stick in “wait and see” mode, and hope the devalued loonie...

BoC Qualifying Rate Hits Record Low

This week the Bank of Canada’s “benchmark rate,” a measure of 5-year posted mortgage rates, dropped to an all-time low of 4.99% (from 5.24%). The benchmark rate is an important number used by lenders to qualify you for a mortgage (i.e., calculate how big of a mortgage you can afford). It’s also used as the basis for: •   Cashback mortgage rates •   Rate guarantees –...