Bank of Canada raises interest rates to 4.75%

[richaceg]

Welp....

Bank of Canada raises key interest rate to 4.75%, the highest level in 22 years. Here’s what’s next

The surprise quarter-point rate hike increases borrowing costs for the first time since January, pushing up Canadian mortgage rates and squeezing household budgets

www.theglobeandmail.com

 

[Darts]

Not really a surprise. Inflation is still stubbornly high.

 

[Indiana]

Someone explain all this to me like I'm 5 yrs old pls.

 

[xmontrealer]

Seems to me they could have signalled this increase a little better as most pundits were assuming there would not be an increase this month.

 

[oral.com]

Tiff says carbon tax contributes 0.5% to inflation, I call bullshit.

 

[Resetset]

Someone explain all this to me like I'm 5 yrs old pls.

 

[bazokajoe]

If people with an open variable rate mortgage didn't lock in when rates started climbing, sucks to be you.

 

[Goodoer]

If people with an open variable rate mortgage didn't lock in when rates started climbing, sucks to be you.

This was me. I could have locked in around the 2.5-2.75% range. Biggest mistake I've ever made as I never thought the rates could go this high without collapsing the economy. Canadians are resilient?

(PS - I'm fine financially... There are some that are in deep trouble).

 

[bazokajoe]

This was me. I could have locked in around the 2.5-2.75% range. Biggest mistake I've ever made as I never thought the rates could go this high without collapsing the economy. Canadians are resilient?

Best of luck to you.
If you went by an advisors advice, you better find a different advisor.

are you locked in now?

 

[drewstar]

This was me. I could have locked in around the 2.5-2.75% range. Biggest mistake I've ever made as I never thought the rates could go this high without collapsing the economy. Canadians are resilient?

(PS - I'm fine financially... There are some that are in deep trouble).

the worse is yet to come. 20-40% mortgage increases when those with fixed rates are due up in a couple years. So many are stupid AF and absolutely clueless with the direction this country is going thanks to the govt and media on their payroll. None of this is an accident.

 

[angrymime666]

the worse is yet to come. 20-40% mortgage increases when those with fixed rates are due up in a couple years. So many are stupid AF and absolutely clueless with the direction this country is going thanks to the govt and media on their payroll. None of this is an accident.

excellent time to execute as an investor if rates do not decrease. pick up property for a possible song.

 

[Goodoer]

Best of luck to you.
If you went by an advisors advice, you better find a different advisor.

are you locked in now?

Fuck, no! I was expecting rates to drop!

the worse is yet to come. 20-40% mortgage increases when those with fixed rates are due up in a couple years. So many are stupid AF and absolutely clueless with the direction this country is going thanks to the govt and media on their payroll. None of this is an accident.

I don't think this will be me as I'm variable... I'm rolling on up and just paying my bills... Sad that I could be trimming off a lot of years.

 

[oral.com]

So the idiot in Ottawa wants to jack up the carbon tax to make petroleum products so expensive we stop using them.

Meanwhile the progressive twit in Washington has released 350 million barrels of oil from the Straregic Petroleum Reserve to keep the price of oil from spiking higher.

We have a made in Canada inflation crisis that will take a generation to resolve

 

[glamphotographer]

Someone explain all this to me like I'm 5 yrs old pls.

All the pennies in your piggy bank give it to the bank man and it will grow to 2 larger piggy banks.

 

[Geee]

View attachment 238126

That's not a picture of a corporation so you are incorrect.

 

[escortsxxx]

Someone explain all this to me like I'm 5 yrs old pls.

The more money people spend more inflation.

When your visa card rate is low Many people will buy things they cannot afford Because the Interest rate is low..

This means more money which causes more inflation. At 3 people are trying to buy The same item 1 of them most likely will ask to pay more so they can win the contest. Store owners realize they can sell items for more.


The bank of Canada raises interest rates so everything is more expensive to buy if you use credit.

Hey hope people will use less credit.

But if people have been making money for 2 years because the pandemic but because of the pandemic Then interest rates have nothing to do with increase spending and this will fail.

rinse and repeat


causes of inflation

war
Nitrogen shortage
Supply chain fails
Ceo raises
Profitiring by corporations ie ticket master links as
World oil shortage
Rare metal shortage
World war monopolies


And way way down there Interest rates

 

[sprite09]

Rise in mortgage interest cost is one of the main contributors to the year-over-year (12-month) nflation rate. The CPI data is somewhat flawed because it only factors in the rise in mortgage interest costs , but most variable rate payers then see a decrease in principal payments. So, Stats Canada is only capturing the upside, artificially increasing the inflation rate.


Main contributors

Main contributors to the 12-month and 1-month change in the Consumer Price Index

none

www150.statcan.gc.ca

Actually, if you strip out that part, then the rate of inflation on a core basis is a lot closer to the Bank of Canada's target of 2 percent. I'm sure the Bank of Canada knows this, but
the recent hike has more to do with communication; trying to be seen as competent and serious about inflation; and potentialy saving face.

Bank of Canada doesn't want to seem like it's doing nothing, esp with the recent hot GDP numbers. It looked stupid by not raising rates earlier and also assuring Canadians in Oct of 2020 that low rates would remain for several years back.

The recent unemployment report (slight increase) might now convince the Bank of Canada to pause, but that could change with if inflation comes in hotter than expected on June 27.

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