Bank interest rates Canada

2022 - 4 - 25

Post cover — Image courtesy of "Canadian Mortgage Trends"

Big Banks Raise 5-Year Fixed Rates Above 4% - Mortgage Rates ... (Canadian Mortgage Trends)

This includes RBC, TD, BMO, CIBC and National Bank of Canada, along with many other mortgage lenders. Among national providers, insured 5-year fixed rates are ...

“After the extreme price increases and heated bidding wars of the last year, this would be a positive shift.” But those in the most expensive markets will feel it most,” he wrote. This will translate into larger annual price declines in 2023 in British Columbia and Ontario.”

Key interest rate could soon go up another half point: BoC (Advisor.ca)

"Inflation is too high," Bank of Canada governor Tiff Macklem said.

“The economy needs higher rates and can handle them,” he said. “And it’s going to be elevated for longer than we previously thought.” It is higher than we expected,” Macklem told the House of Commons standing committee on finance.

Bank of Canada faces 'delicate balance' as it raises rates, Macklem ... (The Globe and Mail)

'We are committed to using our policy interest rate to return inflation to target and will do so forcefully if needed,' the BoC governor told a federal ...

… It does raise a higher risk of a harder landing at large in the economy,” Mr. Hogue said. “If the inflation rate over the next few months starts to come down, then maybe the risk might start to shift. Mr. Hogue of RBC said his base case for the next two years does not include a recession. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. The Bank of Canada is in the early stages of an aggressive campaign to bring borrowing costs back up to normal levels after holding them at record lows for much of the pandemic. The Canadian economy is in a relatively good position to handle rising interest rates, Mr. Macklem said in an appearance before the federal finance committee. Mr. Macklem told the finance committee there are several reasons to believe the Canadian economy will be able to continue growing over the coming years while also bringing inflation down. Mr. Macklem and his team are hoping that Canadian consumers will do much of the heavy lifting to keep the economy out of recession even as monetary policy gets tighter. Mr. Macklem said on Monday that the governing council will likely consider another hike of 50 basis points for the June 1 rate decision. We are responding,” Mr. Macklem said. Household balance sheets are in relatively good shape, with many Canadians having built up savings over the past two years. “I won’t pretend it isn’t delicate,” Mr. Macklem said.

Key interest rate could soon go up another half percentage point ... (CTV News)

The governor of the Bank of Canada is signalling Canada's key interest rate could go up another half percentage point in June to help wrestle inflation ...

The governor of the Bank of Canada is signalling Canada's key interest rate could go up another half percentage point in June to help wrestle inflation under control. Two weeks ago the central bank raised its key interest rate a half point to one per cent and warned more rate hikes would be coming as it works toward an inflation target of two per cent. Key interest rate could soon go up another half percentage point, central bank says

Bank of Canada to consider another half-percentage-point rate hike ... (Reuters)

The Bank of Canada will likely consider another half-percentage-point rate increase in its next policy decision, as "too-high" inflation potentially nears ...

This means we do not have a pre-set destination for the policy interest rate," he said. Macklem said as those factors abate, inflation will naturally come down as long as expectations remain anchored. I do think we're close to the peak," he said. Countries around the world are grappling with high inflation amid surging demand and supply chain bottlenecks. Macklem also reiterated that inflation is too high and looks set to stay higher for longer than previously thought. Late last week, Macklem told reporters he would not rule out increasing interest rates by more than 50 bps in one go to tackle inflation, now running at a 31-year high.

Opening Statement before the House of Commons Standing ... (Bank of Canada)

First, the Canadian economy is strong. Overall, the economy has fully recovered from the pandemic, and it is now moving into excess demand. Second, inflation is ...

How high rates go will depend on how the economy responds and how the outlook for inflation evolves. When the economy needed exceptional support in the depth of the recession, we lowered our policy rate to its lower bound and complemented this with quantitative easing or QE. Last November we ended QE and began reinvestment. With demand starting to run ahead of the economy’s capacity, we need higher rates to bring the economy into balance and cool domestic inflation. Increases in the Bank’s policy rate raise the interest rates on business loans, consumer loans and mortgage loans—and they increase the return on savings. Our policy interest rate is our primary tool to keep the economy in balance and bring inflation back to the 2% target. Our latest outlook is for inflation to average almost 6% in the first half of 2022 and remain well above our 1% to 3% control range throughout this year. But if Canadians’ expectations of inflation stay anchored on the 2% target, inflation in Canada will come back down when global inflationary pressures from higher oil prices and clogged supply chains abate. The economy needs higher rates and can handle them. And now demand is beginning to run ahead of the economy’s productive capacity. While most of the factors pushing up inflation come from beyond our borders, with the economy in excess demand, we are facing domestic price pressures too. Housing activity is still strong, and while we expect it to moderate, it will remain elevated. It is boosting already high inflation in many countries, including Canada, and it is disrupting the global recovery from the COVID-19 pandemic.