Personal Finance

will Canadian bank raise interest rates soon?

  • Last Updated:
  • Jun 16th, 2018 8:02 pm
[OP]
Sr. Member
Mar 1, 2010
837 posts
212 upvotes

will Canadian bank raise interest rates soon?

U.S. Fed raises interest rates today, will Canadian bank raise interest rates soon?
16 replies
Deal Addict
User avatar
Jan 27, 2007
4978 posts
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Peterborough
Yes. Almost guaranteed at the next meetung in July.

Although this Trudeau/Trump spat might come into play.
Deal Addict
Feb 21, 2004
1317 posts
126 upvotes
Montreal
Yes will happen in July, then another one in Nov-Dec...

Half-kidding, who knows these days, would be too easy if we could predict
Got Heat?
Sr. Member
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Jun 15, 2005
908 posts
98 upvotes
HoTiCE_ wrote: Yes will happen in July, then another one in Nov-Dec...

Half-kidding, who knows these days, would be too easy if we could predict
I agree with this statement unless Poloz gets scared due to “trade war”.
Either way there will be at least 1 more this year - July or Nov/Dec.
Deal Expert
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Oct 26, 2003
28907 posts
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Winnipeg
25 basis point at a time? that is pretty slow
Deal Addict
Oct 4, 2009
2167 posts
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Montreal
I’m impressed you all somehow figured out the OP was talking about the Bank of Canada’s interest rate policy.

I thought the OP was asking about USD deposit rates at Canadian banks, following the Fed’s decision.
Member
Jul 25, 2010
450 posts
149 upvotes
Vancouver
Canada would be stupid not to raise rates. Keeping them low is not doing Canada any good as the world continues withdrawing their investments in the Canadian dollar and at this rate the dollar will continue tanking to <0.65 USD. Massively reducing Canada's value in the hopes that foreign investments in the country increase is like paying $100 to get $10 back and generally does only harm to it's residents. Things like real estate have already hit ceiling levels, so can't keep relying on that train to keep things going. Canada needs to find other ways to improve its value in the eyes of the global economy.
Member
Apr 5, 2017
343 posts
40 upvotes
DrAcX wrote:
Jun 16th, 2018 11:37 am
Canada would be stupid not to raise rates. Keeping them low is not doing Canada any good as the world continues withdrawing their investments in the Canadian dollar and at this rate the dollar will continue tanking to <0.65 USD. Massively reducing Canada's value in the hopes that foreign investments in the country increase is like paying $100 to get $10 back and generally does only harm to it's residents. Things like real estate have already hit ceiling levels, so can't keep relying on that train to keep things going. Canada needs to find other ways to improve its value in the eyes of the global economy.
Unfortunately Cdn central bank is very concerned about debt, as our debt is the highest in the world!
Member
Oct 12, 2017
223 posts
135 upvotes
melcon wrote:
Jun 16th, 2018 11:39 am
Unfortunately Cdn central bank is very concerned about debt, as our debt is the highest in the world!
Debt has nothing to do with interest rate policy. It's dictated by our bond yields (which also has nothing to do with national debt).
Member
Apr 5, 2017
343 posts
40 upvotes
serious8 wrote:
Jun 16th, 2018 11:43 am
Debt has nothing to do with interest rate policy. It's dictated by our bond yields (which also has nothing to do with national debt).
Everytime the central bank says interest rate stays the same, the reasons mentioned in the news are: oh, our household debt so high, our debt is the highest in the world, oh the nafta is blablabba... while no one mentions bond yield
Member
Oct 12, 2017
223 posts
135 upvotes
melcon wrote:
Jun 16th, 2018 11:45 am
Everytime the central bank says interest rate stays the same, the reasons mentioned in the news are: oh, our household debt so high, our debt is the highest in the world, oh the nafta is blablabba... while no one mentions bond yield
Read this and get educated then:

https://www.ratesupermarket.ca/blog/why ... es-change/
Member
Jul 25, 2010
450 posts
149 upvotes
Vancouver
melcon wrote:
Jun 16th, 2018 11:39 am
Unfortunately Cdn central bank is very concerned about debt, as our debt is the highest in the world!
This is why Canada is in dire need of a correction. Canadians living off nothing but borrowed money with debts continuing to rise is just asking for a harsh collapse when the time comes. Like a Ponzi scheme, Canada can continue to dig itself deeper, or start fixing the problem, longer it takes, the larger the fallout.
Sr. Member
Nov 18, 2015
887 posts
388 upvotes
DrAcX wrote:
Jun 16th, 2018 12:59 pm
This is why Canada is in dire need of a correction. Canadians living off nothing but borrowed money with debts continuing to rise is just asking for a harsh collapse when the time comes. Like a Ponzi scheme, Canada can continue to dig itself deeper, or start fixing the problem, longer it takes, the larger the fallout.
it's too late for that. it'll rise slowly and slowly correct itself. half of homeowners wouldn't be able to afford their house if it will up a few %.
Deal Addict
Feb 27, 2015
1934 posts
712 upvotes
Toronto, ON
July 11, 2018.

Hike will be up .25%

From 1.25% to 1.50%

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