Posts from the ‘Monday Morning Interest Rate Updates’ Category
Will the Recent Bond Yield Run-up Push Canadian Mortgage Rates Higher?
Monday Morning Interest Rate Update for September 16, 2019
When the Bank of Canada (BoC) met on September 4, the Government of Canada (GoC) five-year bond yield stood at 1.12%, which marked a 52-week low. At the end of that meeting the Bank surprised market watchers when it released a more bullish than expected policy statement, and since then, our bond yields have moved […]
The Bank of Canada’s Surprising Announcement
Monday Morning Interest Rate Update for September 9, 2019
Last week the Bank of Canada (BoC) left its policy rate unchanged, at 1.75%, as the consensus expected, but it also surprised market watchers by maintaining policy-rate language that gave no hint of rate cuts to come.
At-Target Inflation Shouldn’t Delay the Bank of Canada’s Own Mid-Cycle Adjustment
Monday Morning Interest Rate Update for August 26, 2019
The Bank of Canada is in the enviable position of having at-target inflation to keep an eye on, but it should still cut its policy rate at its next meeting.
Denmark Introduces the First Mortgage with a Negative Interest Rate
Monday Morning Interest Rate Update for August 19, 2019
Global bond yields continued to plummet last week and Denmark launched the first negative interest rate mortgage. In today’s post I explain how this will likely impact the Bank of Canada’s thinking.
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 […]
