Posts from the ‘Monday Morning Interest Rate Updates’ Category
Why the Bank of Canada Should Cut its Policy Rate at its Next Meeting
Monday Morning Interest Rate Update for August 12, 2019
The Bank of Canada has reasons to cut its policy rate at its next meeting that go well beyond what the U.S. Federal Reserve is doing.
Why Did Financial Markets React as if the U.S. Federal Reserve Raised Last Week?
Monday Morning Interest Rate Update for August 6, 2019
The U.S. Federal Reserve dropped its policy rate by 0.25% last week but financial markets reacted as if the Fed had raised instead. Today’s post explains why.
Will Lenders Someday Be Paying Us to Take Out A Mortgage? (Don’t Wish For It)
Monday Morning Interest Rate Update for July 29, 2019
Today a staggering amount of bonds trade at negative yields. This prompts the question: Will mortgages ever be offered at negative interest rates?
The Mortgage Qualifying Rate Finally Drops, But Without Rhyme or Reason
Monday Morning Interest Rate Update for July 22, 2019
In today’s post I offer a quick review of how the MQR works and highlight some fundamental and persistent design flaws in this critically important benchmark.
The Bank of Canada (Surprisingly) Opts for Caution
Monday Morning Interest Rate Update for July 15, 2019
Last week the Bank of Canada offered a somewhat surprising assessment of our recent run of stronger than expected data. In today’s post I explain why.
The Loonie’s Power (and Its Constraining Impact)
Monday Morning Interest Rate Update for July 8, 2019
The Loonie provides our economy with a powerful shock absorber, but it also limits the Bank of Canada’s monetary-policy flexibility.
Will the Bank of Canada Lag the U.S. Federal Reserve on Rate Cuts?
Monday Morning Interest Rate Update for June 24, 2019
The U.S. Fed is expected to start cutting its policy rate next month. How will the Bank of Canada respond now that Canadian inflation has risen above its 2% target?
If the U.S. Federal Reserve Drops Rates, Will the Bank of Canada Have to Follow?
Monday Morning Interest Rate Update for June 17, 2019
The futures market is now betting on three rate cuts by the U.S. Fed this year. Today’s post explains how Canadian mortgage rates are likely to be impacted.
What Our Inverted Yield Curve Means for Canadian Mortgage Rates
Monday Morning Interest Rate Update for June 10, 2019
Canada’s yield curve has been inverted since late March. This rare phenomenon has significant implications for our mortgage rates both today and in the future.
Why the Bank of Canada and the Bond Market Still Don’t See Eye To Eye
Monday Morning Interest Rate Update for June 3, 2019
The Bank of Canada thinks our current slump will be temporary but the bond market doesn’t share that view. Today’s post looks at why they don’t see eye to eye.
Five Inflation Highlights with Implications for Canadian Mortgage Rates
Monday Morning Interest Rate Update for May 21, 2019
The Bank of Canada (BoC) recently reminded us that its primary mandate is to keep inflation “low, stable and predictable”, even if doing so “may create side effects that make the economy vulnerable to new shocks.” Given that, anyone keeping an eye on mortgage rates should be paying closing attention to the inflation data, the […]
How Bank of Canada Governor Poloz Can Help Increase the Appeal of Longer-Term Mortgages
Monday Morning Interest Rate Update for May 13, 2019
If Bank of Canada Governor Poloz believes that longer-term mortgages are good for lenders and borrowers alike, here’s how he can help.
Why Our Latest GDP Data Make the Bank of Canada’s Latest Forecast Seem Bullish
Monday Morning Interest Rate Update for May 6, 2019
Regular readers of this blog know full well that the BoC’s forecasts have consistently proven optimistic. Our February GDP suggest that may again be the case.
Bank of Canada Update: Rates to Stay Low for Longer
Monday Morning Interest Rate Update for April 29, 2019
When the Bank of Canada met last week, it left its monetary-policy rate unchanged. More importantly, the Bank also removed any reference to future rate hikes.
How Will Reduced Business Confidence Impact the Bank of Canada’s Outlook?
Monday Morning Interest Rate Update for April 22, 2019
This week’s Bank of Canada meeting includes an especially interesting subtext.
