Tag: bank of canada

What Makes Prime Fluctuate- Podcast with Ian Power @PulseFM

If you have or thinking of getting a mortgage, or a loan you may have heard the term prime. If you are in the industry you have probably heard of the “overnight lending rate.” Lines of credit, Home equity lines of credit, and variable mortgages are all considered fluctuating rates. These rates go up or down based on the prime rate. Prime is a rate that financial institutions lend at. Depending on the product that you are getting ie. mortgage or loan, the rate offered would be at prime – […]

Bank of Canada cuts key rate, citing continued economic concerns

As many experts predicted, Bank of Canada announced this morning that it is cutting its key rate another .25 per cent to .5. Bank of Canada Governor Stephen Poloz cited concerns about oil prices and other commodities, as well as disappointing global growth. He stopped short of calling the current economic conditions a recession as some economists have said and instead called it was a “mild contraction.” Fixed mortgage rates fell in January after the last BoC rate cut, but this doesn’t mean the full discount will be passed on to the consumer. […]

Experts conjecture about Bank of Canada’s next rate announcement

With Bank of Canada’s next rate announcement scheduled for tomorrow, many experts are speculating that the bank could lower its overnight rate target by another quarter per cent to .5. According to The Globe and Mail, “until a few days ago, financial markets saw a cut in the central bank’s key rate, to 0.5 per cent from the current 0.75 per cent, as a 50/50 coin toss; most of the economists at the country’s six big banks believed a cut was likely.” Now, with a small decline in gross domestic […]

Bank of Canada keeping overnight rate target at .75 per cent

In its latest rate announcement earlier today, Bank of Canada kept its overnight rate target steady at .75 per cent, with the Bank Rate and deposit rate at 1 per cent and .5 per cent respectively. That rate has remained the same since BoC’s surprise rate cut in January. The overnight rate is the rate at which major financial institutions borrow and lend one-day funds among themselves. When BoC raises or lowers its overnight rate, it can impact the rate of other consumer financial products such as mortgages. BoC’s announcement states: “While a […]

Latest Bank of Canada rate announcement shows optimism

Yesterday, the Bank of Canada announced that it is keeping its overnight lending rate steady at 0.75 per cent. The BoC surprised experts by dropping its rate from 1 per cent in January, an attempt to stimulate the economy in light of falling oil prices. Following the BoC’s announcement in January, the loonie fell in value to its lowest point since April 2009. But based on the optimism of the bank’s latest announcement, the Canadian dollar (which had fallen as low as 78 cents in recent months) surpassed 82 cents U.S. […]

Preparing for the spring house-hunting season

The official start of spring isn’t until next Friday (March 20), but here in British Columbia, the flowers are already blooming and temperatures are warming up. Another sign that spring is nearly upon us: a report from the Bank of Montreal shows that the home-buying season has already hit markets like Toronto and Vancouver. Experts say that Bank of Canada’s rate cut earlier this year could continue to create a competitive housing market, especially given low inventory in popular markets like Vancouver. With the approach of spring, here are some […]

BoC keeps overnight interest rate steady

As expected over the past week or so, Bank of Canada today announced that it is holding its overnight interest rate steady at 0.75 per cent. Following BoC’s surprise rate cut in January (its first rate cut in nearly five years), banks followed suite by reducing their Prime rate, which meant homeowners with a variable-rate mortgage saw their rate drop (those with a fixed-rate mortgage would only benefit if they chose to refinance or reached the end of their mortgage term). BoC could reduce its overnight lending rate at its […]

Another BoC interest rate cut? Not likely, say experts

With Bank of Canada’s next interest rate announcement set for tomorrow, Canadians are buzzing with predictions about whether BoC will lower its overnight interest rate again following its surprise announcement earlier this year. While experts had predicted another rate cut as of last month, it’s now looking like less of a possibility. In fact, Moneysense is reporting that BoC governor Stephen Poloz said the January rate cut has given the bank time to determine the best way to bring economic stability back to Canada. Poloz also said policy-makers are gaining […]

Experts predict another Bank of Canada rate reduction

Bank of Canada’s next rate announcement is set for March 4, and BoC’s senior deputy governor Carolyn Wilkins stated yesterday that the bank is concerned about Canada’s labour market and hopes that low and stable inflation will help spur more job creation. “The economy still has room to grow” and that the bank’s monetary policy will “support the needed adjustments,” she explained according to MortgageBrokerNews.ca. Given low oil prices and other factors, three (CIBC, TD Bank and RBC) out of the five major banks are predicting another rate cut, reports MortgageBrokerNews.ca: Canada’s largest bank [RBC] has […]

Atrina Kouroshnia February 11, 2015 Post Comment

The impact of Bank of Canada’s rate reduction

It’s been nearly two weeks since Bank of Canada announced a reduction to its overnight lending rate. At the time, we could only conjecture about how this rate reduction might impact borrowers and mortgage rates, but now we’ve seen its actual impact. Here’s a look at what’s happened since the announcement: Prime Lending Rate Soon after Bank of Canada’s announcement, Canada’s five major banks–Royal Bank of Canada, Bank of Montreal, TD Canada Trust, CIBC and Scotiabank–cut their prime lending rate by 15 basis points to 2.85 effective last week. Mortgage Rates […]

Atrina Kouroshnia February 3, 2015 Post Comment
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