Housing and interest rate forecasts for 2025 Dec 30th
Mortgage Digest: Younger homeowners lead the way in paying down mortgage debt Jan 26th
FSRA introduces stricter guidelines for mortgage broker licensing + MORE Jul 20th
Why three big banks raised fixed mortgage rates despite falling bond yields + MORE Dec 3rd
BoC official warns against playing with mortgage rules to make housing affordable + MORE Nov 9th
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…
