Bank of Canada lowers overnight rate target to 0.5%
- Last Updated:
- Jul 30th, 2015 2:12 am
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- SCORE
- FAQ [OP]
- Sr. Member
- Jun 18, 2003
- 764 posts
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489 replies
- gizmo8
- Deal Addict
- Dec 12, 2005
- 4908 posts
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- Greater Toronto Area
Yeah......now the damn banks better lower the rates also..
- Quanger
- Sr. Member
- Sep 25, 2006
- 598 posts
- 58 upvotes
- Ottawa
I have a feeling we'll only see a 0.15% like the last drop.
- Jamal79
- Jr. Member
- Jul 3, 2011
- 128 posts
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- Toronto
- popbottle
- Deal Fanatic
- Apr 20, 2011
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- Vancouver
hopefully rate spy and rate hub will have updates
- mikek33
- Deal Addict
- Dec 19, 2009
- 1955 posts
- 2985 upvotes
- Ottawa
What kinds of things do banks consider when deciding to follow the BoC decrease or not? Not really sure how this process works...
- choclover
- Deal Fanatic
- Oct 7, 2007
- 9404 posts
- 5374 upvotes
I think this is terrible news for the following reasons:
a. lowering rates will push real estate prices even higher
b. it will cause people to take on even more debt
c. it will make our dollar less valuable (e.g. if we want to travel to the US it is becoming almost unaffordable)--personal selfish reason
d. it hasn't done much for us in the past so why keep doing it expecting a different outcome
e. it will make it tougher to adapt to rate increases if they ever happen
f. it leaves less room for a cut if and when we really need one in the future
Why does government think taking another "hit" of the debt drug is good for the people? This is not going to end well.
My gloomy two cents.
a. lowering rates will push real estate prices even higher
b. it will cause people to take on even more debt
c. it will make our dollar less valuable (e.g. if we want to travel to the US it is becoming almost unaffordable)--personal selfish reason
d. it hasn't done much for us in the past so why keep doing it expecting a different outcome
e. it will make it tougher to adapt to rate increases if they ever happen
f. it leaves less room for a cut if and when we really need one in the future
Why does government think taking another "hit" of the debt drug is good for the people? This is not going to end well.
My gloomy two cents.
- rj2wells
- Deal Addict
- Jan 24, 2015
- 1021 posts
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- Canadian in USA
RIP Loonie
- Anikiri
- Deal Guru
- May 1, 2012
- 10538 posts
- 11427 upvotes
- Toronto
People don't get it. This isn't the economic conditions of times past. We are living in a time of extreme low economic confidence, which translates into extreme low interest rates.
What you consider to be a normalization of interest rates, is probably closer to the lower 1-2% than it is to the 5-7% you were used to.
If economies aren't growing in a world of emergency interest rates, what makes you think it will ever grow to a point to warrant much higher rates?
What you consider to be a normalization of interest rates, is probably closer to the lower 1-2% than it is to the 5-7% you were used to.
If economies aren't growing in a world of emergency interest rates, what makes you think it will ever grow to a point to warrant much higher rates?
- Rhaegar
- Deal Addict
- Jan 28, 2012
- 1785 posts
- 693 upvotes
Insanity, absolute insanitychoclover wrote: ↑I think this is terrible news for the following reasons:
a. lowering rates will push real estate prices even higher
b. it will cause people to take on even more debt
c. it will make our dollar less valuable (e.g. if we want to travel to the US it is becoming almost unaffordable)--personal selfish reason
d. it hasn't done much for us in the past so why keep doing it expecting a different outcome
e. it will make it tougher to adapt to rate increases if they ever happen
f. it leaves less room for a cut if and when we really need one in the future
Why does government think taking another "hit" of the debt drug is good for the people? This is not going to end well.
My gloomy two cents.
The government is trying to cover their incompetence by goosing the economy for just a few more months. They are hoping that it's enough to win, and then when everything goes to hell and it turns out the budget isn't balanced this year after all, it will be too late.
- onebuddy
- Member
- Aug 19, 2013
- 434 posts
- 380 upvotes
- Etobicoke
Goodbye to cross border shopping.
- timeoninternet
- Deal Addict
- Apr 27, 2010
- 1608 posts
- 389 upvotes
This is a really bad move of cutting another quarter point. They should have leave it along even the growth rate decrease.
1x$36 Zoomer Plan with 2GB + Unlimited Call and Text
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1x$45 Zoomer Plan with 4GB + Unlimited Call and Text
- mau_mau
- Deal Addict
- Feb 24, 2008
- 3583 posts
- 2275 upvotes
- Mississauga
TD lowered to 2.75; expect the others to follow
- popbottle
- Deal Fanatic
- Apr 20, 2011
- 5310 posts
- 484 upvotes
- Vancouver
Lower dollar helps exporters that sell Canadian products to the world . The governor said any housing effects are a side effect.
Shopping in Canada is what people are supposed to do.
Shopping in Canada is what people are supposed to do.
- arkroyal
- Deal Addict
- Apr 19, 2014
- 1042 posts
- 991 upvotes
LOL.. when real estate agents are worried about the rate cut and a housing bubble.. popcorn time:
http://business.financialpost.com/perso ... correction
http://business.financialpost.com/perso ... correction
- jainik18
- Member
- Aug 26, 2009
- 450 posts
- 59 upvotes
- Toronto
- jainik18
- Member
- Aug 26, 2009
- 450 posts
- 59 upvotes
- Toronto
- garmium
- Sr. Member
- Feb 8, 2015
- 656 posts
- 734 upvotes
- Kanata
This is terrible news for for those who haven't bought yet and are still in the market to buy a home.choclover wrote: ↑I think this is terrible news for the following reasons:
a. lowering rates will push real estate prices even higher
b. it will cause people to take on even more debt
c. it will make our dollar less valuable (e.g. if we want to travel to the US it is becoming almost unaffordable)--personal selfish reason
d. it hasn't done much for us in the past so why keep doing it expecting a different outcome
e. it will make it tougher to adapt to rate increases if they ever happen
f. it leaves less room for a cut if and when we really need one in the future
Why does government think taking another "hit" of the debt drug is good for the people? This is not going to end well.
My gloomy two cents.
a. real estate prices will be pushed even higher. That's great if you already bought a home
b. It will cause people to take on more debt. If you bought already, your mortgage is the same. In fact, it should be lower since you are repaying it every month
Isn't that also a good thing? So many people preach to buy Canadian and not foreign. Thus now we are more inclined to buy local and support local
- FoFai2015
- Deal Addict
- Jan 2, 2015
- 1633 posts
- 639 upvotes
- Toronto, ON
CIBC had previously lowered their prime rate from 3 to 2.85%, so I guess it'll go down again now. That'd be good for me if I ever actually used my line of credit, but I don't. Instead, the savings rate on my savings account will probably drop. It's already 1.05%, dropped from 1.3% earlier this year.
That Tangerine promo looks better and better, but I don't know if it's a "sure thing" for new customers.
That Tangerine promo looks better and better, but I don't know if it's a "sure thing" for new customers.
- streits
- Member
- Apr 27, 2015
- 441 posts
- 255 upvotes
Canadian Peso.
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