Opinion: Mortgage loyalty isn’t given, it’s earned + MORE Feb 5th
Mortgage terms and closing costs leave many homebuyers confused, survey shows Dec 3rd
‘Strike Out Cancer’ goes national as mortgage industry aims to raise $1M in 2026 + MORE Jan 14th
Canada’s inflation rate falls to 2.5%, paving way for another interest rate cut + MORE Aug 23rd
Renewing your mortgage? A guide for Canadians + MORE Oct 10th
Making sense of the markets this week: July 14, 2024
– moneysense.ca
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Are U.S. rate cuts on the way?
While Canada’s inflation rate is obviously at the forefront around decision making for the Bank of Canada (BoC) in setting the key interest rate, inflation below the border is also a major consideration. Arguably, policymakers are loath to devalue the Canadian dollar beyond a certain level. Consequently, if U.S. inflation stays high—and U.S. interest rates correspondingly stay high—it will likely impact just how quickly the BoC can cut our interest rates.
“The Canadian and American economies are very closely intertwined, especially when it comes to the cost of borrowing. Historically the BoC and the Fed have mirrored each other in terms of monetary policy (the act of cutting, holding, or hiking their benchmark interest rates).”
—Penelope Graham, mortgage expert
Markets were mostly flat on Thursday after the U…
