The Bank of Canada today reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is continuing its policy of balance sheet normalization. The global economy grew by about 3% in the first quarter of 2024, broadly in line with the Bank’s April Monetary Policy Report (MPR) projection. In the United States, the economy expanded more slowly than was expected, as weakness in exports and inventories weighed on... [read more]

Are Canadian government bond yields headed lower in 2024? This is the expectation now that the Bank of Canada (BoC) is widely anticipated to cut interest rates early next year, according to investors in the futures market. After the benchmark ten-year yield topped 4.25 percent in October, the bond has slumped below 3.5 percent. The same performance was seen with short- and long-term debt instruments. But why should buyers and sellers in the Canadian real estate... [read more]

While BoC stands pat, interest rates are starting to change fast. Mortgage relief is starting, even as the Bank of Canada continues to leave its benchmark overnight rate untouched. But alongside change comes a marked decline in rates guaranteed investment certificates. Now is the time to zero in on what’s happening with the interest rates that interest you. Note…other rates are indirectly influenced by the overnight rate, but move independently. For example, the cost of fixed-rate... [read more]

 It is the last week of the month.  Here is your monthly dose of “Five Bullet Friday.” A list of a few things I'm thinking about or exploring. 1. Short Article I Read: Bank of Canada Holds Key Rate at 5%, Signals It's Done With Hikes This week, the Bank of Canada has decided to hold the rates again. This is a good sign for those looking to buy or sell this coming year. As we have noticed a slight increase in activity since the new year. The momentum is headed... [read more]

Hello my friends :) As we have all heard by now, Canada’s inflation rate has increased in the month of December to 3.4% from 3.1% in November  Before we freak out, let’s take a deeper dive into what that really means… WHAT CAUSED THE INCREASE? The headline inflation rate ticked up from 3.1% in November, largely because of a sharper decline in gasoline prices a year ago compared with last month. Economists were widely expecting this rise due to a base... [read more]